STOCKS | HSBC Cuts Alibaba Target Price to HK$166, Keeps Buy Rating

HSBC Global Research cut its target price for Alibaba Group Holding to HK$166 from HK$172 while maintaining a buy rating. According to Jin10, the bank lowered its earnings forecasts for Alibaba to reflect continued higher AI investment, and it reduced its U.S.-listed shares target price to $170 from $176. HSBC cut its forecast for Alibaba’s fiscal 2027 adjusted net profit by 3.7% to 99.404 billion yuan. For the first fiscal quarter ending in late June this year, HSBC expected revenue to rise 8% year on year to 267.934 billion yuan, while adjusted net profit was expected to fall 41% to 20.877 billion yuan. HSBC also said that if profitability in Alibaba’s China e-commerce business bottomed out in the first fiscal quarter, the stock price could be further re-rated on valuation.