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<Research>Nomura Raises Alibaba's TP to USD215; Loss in Instant E-commerce May Have Peaked Out Last Qtr
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Nomura has released a report predicting that Alibaba's (BABA.US) 2QFY26 earnings may decline due to its investments in AI and large language models, though its revenue may meet forecasts. Alibaba's target price has been raised from USD170 to USD215, with a Buy rating.

The report stressed that Alibaba's China e-commerce division revenue may grow by 15% YoY, with customer management revenue (CMR)/ instant retail revenue increasing by 10%/ 50% YoY.

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Because of a RMB36 billion loss from instant retail operations, Alibaba's China e-commerce division's EBITA may nosedive to just RMB10 billion.

In Nomura's opinion, the loss in instant retail should have peaked out in the September quarter and may narrow to RMB21 billion in the December quarter thanks to improved operational efficiency.
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