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<Research>JPM Expects BABA-W (09988.HK) to Accelerate Cloud Rev Growth in 2FQ, Trims TP to $235
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BABA-W (09988.HK)(BABA.US) is set to announce its results for 2FQ26 ended September, JPMorgan released a research report saying. The broker forecasted a revenue YoY growth of 5%, with adjusted profit expected to decline by 70% YoY to RMB11 billion.

Cloud business revenue is projected to accelerate YoY incline to 30%, while customer management revenue is anticipated to maintain growth above 10% YoY.

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BABA-W's adjusted profit may post a steeper-than-expected decline during the period due to aggressive investments in AI and instant retail, JPMorgan added. However, the broker believed that relevant investments will further solidify the Group's long-term growth prospects.

Reflecting increased investment, JPMorgan trimmed its target prices for BABA-W's H-shares/ US stock from $240/ US$245 to $235/ US$240, with rating kept at Overweight.
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