Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>HSBC Research Raises BABA-W (09988.HK) TP to HKD176, Upbeat on AI Commercialization Inflection Pt
Recommend 31 Positive 40 Negative 21 |
||||
|
||||
|
HSBC Global Investment Research issued a report expressing optimism that BABA-W (09988.HK)'s AI commercialization has entered an inflection point. The broker projected AI-driven cloud business growth to accelerate, with margins improving drastically over the next two quarters. It maintained a Buy rating on BABA-W and raised its cloud EBITA forecasts for FY27 and FY28 by 40-50% to reflect margin expansion. The H-share TP was lifted from HKD168 to HKD176, while the US share TP for Alibaba Group (BABA.US) was raised from USD172 to USD180. Alibaba expected MaaS ARR to whop RMB30 billion in FY27. The broker believed accelerating MaaS revenue growth, GPU leasing and cross-selling of public cloud services will support stronger cloud business expansion. More importantly, near-term cloud margins have upside potential on hiking CPU prices, a revenue mix shift toward higher-margin MaaS, and increased deployment of its in-house T-Head chips to enhance inference efficiency. The broker estimated MaaS currently accounts for more than 20% of Alibaba's AI revenue, up from 10% in the previous quarter, and expected the proportion to reach 35% by the end of FY27. HSBC Global Investment Research maintained a positive view on Alibaba's AI leadership and robust cloud growth outlook. The broker raised its FY27 and FY28 earnings forecasts by about 2%. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
