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<Research>Citi Expects BABA-W (09988.HK) Cloud Rev. Growth to Keep Accelerating, Reaffirms Buy Rating
Citigroup released a research report on BABA-W (09988.HK) (BABA.US), which is expected to deliver stable customer management revenue (CMR) in its fiscal fourth quarter ending March...
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<Research>Citi Expects BABA-W (09988.HK) Cloud Rev. Growth to Keep Accelerating, Reaffirms Buy Rating
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Citigroup released a research report on BABA-W (09988.HK)  +3.300 (+3.131%)    Short selling $2.67B; Ratio 21.728%   (BABA.US)      , which is expected to deliver stable customer management revenue (CMR) in its fiscal fourth quarter ending March 31, 2025.

Fueled by heightened merchant service fees and higher penetration of its promotional tool, Quanzhantui, the monetization rate improved, with CMR growth momentum predicted to persist. Cloud business revenue growth may also continue to accelerate.

Related NewsCMBI Slightly Cuts Alibaba TP to USD157; Core E-commerce Biz Expected to Keep Thriving
Recently, the market has focused on the impact of tariff policies on domestic consumption trends and any effects on cloud business demand from large enterprises and SMEs. Citigroup noted that Alibaba’s stock price has corrected by over 20% in the past week, bringing its current valuation back to an attractive level.

Given the relatively small U.S. exposure of its AIDC business, coupled with ongoing cloud technology innovation and foundation model R&D, these factors are anticipated to hedge any negative impacts.

The broker also adjusted its FY4Q25 forecasts on Alibaba, raising its total revenue projection by 0.7% while lowering its non-GAAP net profit forecast by 3.8%. The target price was slightly trimmed from HKD166 to HKD165, with a Buy rating reaffirmed.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-04-17 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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