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Morgan Stanley expects Alibaba Cloud to be the largest cloud market share winner and is likely to continue to be a key catalyst for Alibaba's stock price, making Alibaba the preferred target in the sector. It is projected that Alibaba Cloud's revenue will grow by 45% in the first quarter of fiscal year 2027, and the acceleration of cloud business profit margins is expected to expand to 11%. The company is rated overweight with a target price of $180.
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