Alibaba Group is likely to report solid June-quarter results, according to Jefferies analysts in a commentary.

The market has already priced in expectations of investment in instant commerce, the analysts say. Solid momentum was seen across segments during the June quarter, they say.

For the Taobao & Tmall Group, Jefferies estimates that customer management revenue--a metric that gauges how much Alibaba earns from merchants--outpaced GMV growth.

EBITA of Taobao & Tmall is likely to decline 20% year-on-year, factoring in the investment in instant commerce, they add.

Accelerating cloud revenue growth is expected, driven by strong AI demand, while losses from international commerce continue to narrow.

Jefferies maintains a buy rating and slightly lowers its target price to HK$145.00 from HK$148.00. Shares closed at 3.8% lower at HK$102.90.