JPMorgan has issued a research report reiterating its Overweight rating on Alibaba (BABA.US, 09988) for both its US and Hong Kong-listed shares, maintaining price targets of $205 and HK$200 respectively.

The bank has revised its forecasts, lowering the total revenue estimate for fiscal year 2027 by 1% to account for a weaker-than-anticipated macroeconomic and consumer environment.

Conversely, it has raised its fiscal 2028 revenue forecast by 3%, citing a robust growth outlook for the company's cloud computing business.

Losses from Alibaba's food delivery and instant retail investments are narrowing rapidly, while cloud revenue growth is accelerating.

Furthermore, losses in other business segments decreased sequentially due to increased user acquisition spending for the Tongyi Qianwen (Qwen) model during the Lunar New Year period.

Consequently, JPMorgan has increased its adjusted earnings per share estimate for fiscal 2027 by 2%, marking the first upward revision for Alibaba's earnings since May 2025.

The firm anticipates that Alibaba's first-quarter results for fiscal 2027 will surpass market expectations.