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JPM: BABA-W (09988.HK) LT Value Story Unchanged; Rating Kept at Overweight w/ TP $200
2026-03-25 10:56:12
After the investor meeting following BABA-W (09988.HK)'s results, JPMorgan increased confidence in the strategic logic of its investment story, though confidence in a short-term share price revaluation has not significantly improved, JPMorgan published a research report saying.

The management indicated that the current profit pressure is a strategic result of increased investment in AI, cloud and quick commerce, rather than evidence of weaker competitiveness or a failed business model.

JPMorgan was more optimistic about the 12-month basis, and noted that BABA-W is simultaneously building scale in AI infrastructure, model services, applications and e-commerce distribution.

If the Company can maintain accelerated growth in the cloud business, more evident AI monetization, and demonstrate a credible path to improved unit economics in quick commerce, the market will be more willing to value BABA-W beyond the core e-commerce earnings framework.

The meeting enhanced confidence in the authenticity of the long-term value creation framework, but has not yet eliminated the need for short-term execution proof. Therefore, the broker kept rating at Overweight on BABA-W's H-shares, with a target price of $200.
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AASTOCKS Financial News
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