--- title: "Morgan Stanley: Reiterates \"Overweight\" rating on Alibaba-W, valuation of Alibaba Cloud and instant retail overlooked" type: "News" locale: "en" url: "https://longbridge.com/en/news/280094068.md" description: "JP Morgan reiterated its \"Overweight\" rating on Alibaba-W, predicting that domestic e-commerce profits will be approximately RMB 196 billion in the fiscal year 2027, and that the valuation does not reflect the value of Alibaba Cloud and the instant retail platform. The bank has lowered its revenue and earnings per share forecasts for the fiscal year 2026, and reduced its target price for US stocks from $215 to $205, and for Hong Kong stocks from HKD 210 to HKD 200. Alibaba Cloud's revenue growth is rebounding, with management targeting cloud business revenue to reach $100 billion in the next five years; if achieved, the cloud business could be valued at $400 billion" datetime: "2026-03-23T03:48:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280094068.md) - [en](https://longbridge.com/en/news/280094068.md) - [zh-HK](https://longbridge.com/zh-HK/news/280094068.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/280094068.md) | [繁體中文](https://longbridge.com/zh-HK/news/280094068.md) # Morgan Stanley: Reiterates "Overweight" rating on Alibaba-W, valuation of Alibaba Cloud and instant retail overlooked According to the Zhitong Finance APP, JP Morgan has released a research report stating that it has lowered its revenue and adjusted earnings per share forecasts for Alibaba-W (09988) for the fiscal year 2026 by 1% and 10% respectively, to reflect the performance in the December quarter. It has also reduced the revenue and adjusted earnings per share forecasts for the fiscal year 2027 by 3% and 5% respectively; therefore, it has lowered the target price for Alibaba (BABA.US) in the US stock market from $215 to $205, and the target price in the Hong Kong stock market from HKD 210 to HKD 200. The rating for Alibaba remains at "Overweight." Alibaba's performance for the quarter ending last December highlighted a specific and verifiable investment thesis, indicating that the market currently values Alibaba solely based on its domestic e-commerce business. The bank predicts that Alibaba's domestic e-commerce profit for the fiscal year 2027 will be approximately RMB 196 billion, which, based on a price-to-earnings ratio of about 10 times, implies that Alibaba Cloud and the instant retail platform are completely overlooked in the valuation, reflecting no value. The bank pointed out that Alibaba Cloud's revenue growth has rebounded from a low of 7% six quarters ago to 36% in the most recent quarter, with AI product revenue recording triple-digit growth for ten consecutive quarters. Management aims for cloud business revenue to reach $100 billion in the next five years, representing a compound annual growth rate of about 47%. The bank believes that recent quarterly data has not negated the trajectory to achieve this goal. If the target is met and a reasonable valuation is obtained, the value of the cloud business alone could reach $400 billion, which is higher than Alibaba's current market value of approximately $298 billion ### Related Stocks - [BABA-W (09988.HK)](https://longbridge.com/en/quote/09988.HK.md) - [Alibaba Group Holding Limited (BABA.US)](https://longbridge.com/en/quote/BABA.US.md) - [Amplify Online Retail ETF (IBUY.US)](https://longbridge.com/en/quote/IBUY.US.md) - [State Street® SPDR® S&P® Retail ETF (XRT.US)](https://longbridge.com/en/quote/XRT.US.md) - [Global X Cloud Computing ETF (CLOU.US)](https://longbridge.com/en/quote/CLOU.US.md) - [GraniteShares 2x Long BABA Daily ETF (BABX.US)](https://longbridge.com/en/quote/BABX.US.md) - [KraneShares 2x Long BABA Daily ETF (KBAB.US)](https://longbridge.com/en/quote/KBAB.US.md) - [Global X E-commerce ETF (EBIZ.US)](https://longbridge.com/en/quote/EBIZ.US.md) - [Hwabao CSI HK Equities Internet ETF (513770.CN)](https://longbridge.com/en/quote/513770.CN.md) - [Yinhua MSCI China A ETF (512380.CN)](https://longbridge.com/en/quote/512380.CN.md) - [VanEck Retail ETF (RTH.US)](https://longbridge.com/en/quote/RTH.US.md) - [Direxion Daily FTSE China Bull 3X ETF (YINN.US)](https://longbridge.com/en/quote/YINN.US.md) - [KraneShares CSI China Internet ETF (KWEB.US)](https://longbridge.com/en/quote/KWEB.US.md) - [E Fund CSI HK Connect Internet ETF (513040.CN)](https://longbridge.com/en/quote/513040.CN.md) - [ProShares Online Retail ETF (ONLN.US)](https://longbridge.com/en/quote/ONLN.US.md) - [YieldMax BABA Option Income Strategy ETF (BABO.US)](https://longbridge.com/en/quote/BABO.US.md) ## Related News & Research - [Alibaba's AI strategy shift comes into focus with big bets on agents](https://longbridge.com/en/news/279550043.md) - [Alibaba: Goal Is To Surpass $100 Bln In Combined Cloud, AI External Revenue Over Next 5 Yrs - Conf Call](https://longbridge.com/en/news/279792744.md) - [China’s AI edge built on power grid, open-source models: Alibaba’s Joe Tsai](https://longbridge.com/en/news/280068527.md) - [Alibaba Rises After Announcing AI Price Hike](https://longbridge.com/en/news/279558117.md) - [China's E-Commerce Wars Are Crushing Alibaba's Profits](https://longbridge.com/en/news/279778524.md)