Major Banks Ratings | CMB International raises Alibaba's target price to $220.1, citing strong growth prospects for its cloud business

Glonghui, May 14 – CMB International has released a report stating that Alibaba's revenue for the fourth fiscal quarter reached 243.4 billion yuan, a year-on-year increase of 3%, which is 0.4% higher than the bank’s forecast; adjusted EBITA was 5.1 billion yuan, 7% higher than the bank’s forecast. Cloud business development remains a highlight, with annual revenue growth accelerating from 36% in the third fiscal quarter to 38% in the fourth. The bank remains optimistic about Alibaba as one of the main beneficiaries of the AI theme among its covered stocks. Supported by strong demand, the bank is optimistic about further acceleration in cloud revenue growth, especially as MaaS-related services continue to scale, and is also positive about margin expansion; it believes this should help drive Alibaba’s valuation re-rating. The bank has raised its target price for Alibaba’s US shares from $206.1 to $220.1, maintaining a “Buy” rating.