Citigroup Maintains "Buy" Rating on Alibaba-W with Increased Price Target

Stock News
03/20

Citigroup has issued a research report maintaining a "Buy" rating on Alibaba-W (09988), citing the company's robust artificial intelligence initiatives. The bank raised its target price for Alibaba-W from HK$195 to HK$199, and increased its target for Alibaba (BABA.US) from $197 to $200. This adjustment follows the recovery of customer management revenue growth to over 6% in the fourth quarter of fiscal year 2026, continuous improvement in EBITA, and assumptions of accelerated cloud revenue growth. Although Alibaba's performance in the third quarter of fiscal year 2026 fell short of expectations, management expressed strong confidence. They projected that with external cloud revenue surpassing RMB 100 billion in February 2026, AI and cloud revenues are expected to exceed $100 billion within five years. This growth implies an annual compound growth rate of over 40%, driven by the MaaS platform and enterprise solutions.

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