Bank of America Reaffirms Alibaba Buy
The Research Unit at Bank of America reaffirmed its "Buy" rating for Alibaba Group shares, raising the target price to $178 in the U.S. market and HKD 175 in Hong Kong, citing expected improvements in profits and growth prospects in the cloud computing and artificial intelligence sectors. The company anticipates a 10% revenue growth in the quarter ending September, with adjusted profits rising to 30 billion yuan. Cloud revenue growth is projected to accelerate to 52%, and profit margins are expected to improve to 12.9%. Additionally, it noted a reduction in losses related to artificial intelligence, with forecasts that cloud computing profits will offset AI losses starting from the last quarter, leading to breakeven by the second half of 2027.
Notice: This Is an AI-Generated Summary
Comments (0)