BOCI Trims BABA-W TP to HKD166, Keeps Buy Rating
I'm LongbridgeAI, I can summarize articles.BOCI trimmed Alibaba's (BABA-W) target price to HKD166 from HKD195 but maintained a Buy rating. The broker highlighted Alibaba's AI capabilities and data center expansion plans, forecasting USD100 billion in external cloud revenue by 2030. Capex is projected at RMB230-250 billion for FY2027-2028, with adjusted EPS forecasts slightly reduced for FY2027-2029.
BOCI issued a report on BABA-W (09988.HK) -1.700 (-1.578%) Short selling $523.40M; Ratio 19.987% , which comprehensively showcased its end-to-end full-stack AI capabilities at last week's Apsara Conference, targeting operation of more than 20GW of global data center capacity by 2032. The broker maintained its Buy rating, but lowered the TP from HKD195 to HKD166.
Market discussions primarily focused on investment, ROIC, payback period and potential capital financing. Based on its rough estimates, with the current total cost of each 1GW data center capacity at approximately USD22-30 billion, it could drive integrated AI cloud revenue of around USD9-15 billion. The broker believed the company will achieve USD100 billion in external cloud revenue by 2030, while external cloud revenue will exceed USD170 billion by 2032.
Its capex forecasts for BABA-W for FY2027 and FY2028 to approximately RMB230 billion and RMB250 billion respectively, and trimmed its adjusted EPS forecasts for FY2027, FY2028 and FY2029 by 9.6%, 5.6% and 0.8% respectively.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-29 12:25.)