Alibaba (BABA, Financial) saw its stock rise more than 7% to $106.44. Analysts are optimistic about its performance, with Macquarie reaffirming a "buy" rating and raising its Hong Kong target price to HKD 176.3. The firm anticipates a strong fourth fiscal quarter, expecting improvements in Alibaba's core businesses and a sustainable increase in commercialization rates due to advertising technology advancements.
Citigroup also maintained a "buy" rating for Alibaba, predicting stable customer management revenue (CMR) for the fourth quarter. The company is expected to benefit from increased merchant service fees and higher penetration rates, resulting in a continued rise in monetization rates. Additionally, cloud business revenues are expected to grow rapidly.
Morgan Stanley reiterated an "overweight" rating for Alibaba with a target price of $180, recognizing Alibaba as a major beneficiary of AI advancements. They forecast Alibaba's fourth-quarter CMR growth to outpace gross merchandise volume growth, with cloud revenue accelerating to 18%.
