CMB International Securities Maintains a Buy Rating on Alibaba (BABA), Lowers PT

On May 19, Saiyi He, an analyst from CMB International Securities, maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) and lowered the associated price target to $155.50 from $157.

The rating came after the company’s strong March quarter fiscal 2025, as it delivered a 7% revenue growth and a notable EBITA growth of 36%.

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The analyst attributed this growth to improved profitability across the company’s business segments, especially in the Taobao and Tmall Groups, where customer management revenue rose 12% in the quarter. Alibaba Group Holding Limited’s (NYSE:BABA) solid performance is anticipated to continue in the next fiscal quarter, supported by higher take rates and healthy GMV growth.

The analyst also supported the Buy rating with promising revenue growth in the company’s Cloud Intelligence Group, and anticipates further acceleration with a rise in digitalization demand. Quarterly revenue growth in the Cloud Intelligence Group accelerated to 18%, while AI-related product revenue attained triple-digit growth for the seventh consecutive quarter.

Saiyi He sees Alibaba Group Holding Limited’s (NYSE:BABA) ongoing investments in R&D and technology as a strong base for long-term growth in the cloud sector.

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