CICC maintains Alibaba's outperform rating with a target price of 172 Hong Kong dollars.

CICC issued a research report on Alibaba-SW, maintaining an "outperform" rating with a target price of HK$172. The performance in 3QFY26 was below expectations, mainly due to pressure on e-commerce and investment in flash sales dragging down EBITA; however, cloud business is growing rapidly, and the mass production of Pingtouge chips is expected to improve AI investment ROI. Net profit forecasts for FY26/27 were lowered to 80.7 billion/98.3 billion yuan. The target price is based on SOTP valuation, corresponding to a 30% upside potential.