CCB International has issued a research report, in which it has increased the target price for Alibaba-W (09988) by 15%, taking it from HK$174 up to HK$200.7, while also reiterating its 'Outperform' rating. The bank has adjusted its growth rate projections for Alibaba's cloud business upwards for the fiscal years spanning 2026 to 2028. It anticipates a steady, quarter-by-quarter improvement in the growth rate of Alibaba's cloud computing division during the fiscal year 2026.

Driven by optimistic outlooks for the cloud business, CCB International has revised its revenue and earnings estimates for Alibaba in an upward direction for the fiscal years 2026 to 2028. The bank expressed that, following the Alibaba 2025 APSAR Conference, it has developed greater confidence in the growth potential of Alibaba's cloud computing sector. This newfound confidence stems from several factors: the management's ambition to outperform current AI projects, a positive outlook on long-term AI demand, robust AI solution offerings, and a globalization strategy poised to broaden the market's potential size.