02:55 PM EDT, 03/20/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target to USD163 from USD196, on a P/E of about 15x our FY 28 (Mar.) EPS of USD10.87 (based on current forex), which is within its long-term range. We cut our FY 26 EPS to CNY35.94 from CNY43.84, FY 27 to CNY56.81 from CNY64.20, and FY 28 to CNY74.64 from CNY82.54. Our updated estimates reflect mixed Dec-Q results. Cloud revenue growth accelerated to 35% Y/Y (from +34% in Sep-Q), but the quarter was overshadowed by elevated investments/margin pressure, particularly within e-commerce. Looking ahead, we expect an improving macro backdrop and narrowing losses in Quick Commerce to support stronger margins. We also see further acceleration in cloud growth (potentially 40%+ in FY 27), as the company targets USD100B in cloud revenue over the next five years. Cloud margins, which were 9% this quarter (vs. 10% a year ago), should expand in FY 27 as recent capex is increasingly monetized. We think shares are attractively valued and see BABA as the leader of the AI cloud infrastructure build in China.