Bank of America maintained Alibaba's “buy” rating and raised its target price for US stocks to US $178 and the target price for Hong Kong stocks from HK$172 to HK$175. The reason is that the company's profit improvements have not been fully reflected in the stock price. The agency expects Alibaba's revenue for the September quarter to increase 10% year-on-year. The adjusted EBITA is 30 billion yuan, higher than the market's unanimous forecast of 26 billion yuan and the previous quarter's 27 billion yuan. Among them, the cloud business revenue growth rate is expected to accelerate from 45% in the previous quarter to 52%, demand from external customers will increase by nearly 55%, and the adjusted EBITA profit margin will rise from 11.6% to 12.9%. Bank of America predicts that with improvements in training efficiency, AI laboratory and application business losses will be narrowed from 14 billion yuan to 11 billion yuan, and it is estimated that starting from the December quarter, adjusted EBITA for the cloud business can cover AI business losses, driving the cloud and AI business to gradually achieve break-even in the second half of fiscal year 2027 with losses of more than 20 billion yuan in fiscal year 2027. On the e-commerce side, the agency expects a 5% year-on-year decline in customer management revenue, but EBITA will still grow 2% after comprehensive e-commerce adjustments, driven by increased efficiency and narrowing of immediate retail losses. The main risks include AI adoption or a slowdown in cloud demand, AI capital expenditure faster than commercialization, and increased competition in e-commerce, instant retail, and cloud businesses.

Bank of America maintained Alibaba's “buy” rating and raised its target price for US stocks to US $178 and the target price for Hong Kong stocks from HK$172 to HK$175. The reason is that the company's profit improvements have not been fully reflected in the stock price. The agency expects Alibaba's revenue for the September quarter to increase 10% year-on-year. The adjusted EBITA is 30 billion yuan, higher than the market's unanimous forecast of 26 billion yuan and the previous quarter's 27 billion yuan. Among them, the cloud business revenue growth rate is expected to accelerate from 45% in the previous quarter to 52%, demand from external customers will increase by nearly 55%, and the adjusted EBITA profit margin will rise from 11.6% to 12.9%. Bank of America predicts that with improvements in training efficiency, AI laboratory and application business losses will be narrowed from 14 billion yuan to 11 billion yuan, and it is estimated that starting from the December quarter, adjusted EBITA for the cloud business can cover AI business losses, driving the cloud and AI business to gradually achieve break-even in the second half of fiscal year 2027 with losses of more than 20 billion yuan in fiscal year 2027. On the e-commerce side, the agency expects a 5% year-on-year decline in customer management revenue, but EBITA will still grow 2% after comprehensive e-commerce adjustments, driven by increased efficiency and narrowing of immediate retail losses. The main risks include AI adoption or a slowdown in cloud demand, AI capital expenditure faster than commercialization, and increased competition in e-commerce, instant retail, and cloud businesses.