A recent research report by CLSA forecasts Alibaba (BABA, Financial) to achieve solid growth in the fiscal fourth quarter ending March. The company's total revenue is projected to grow by 8% year-on-year to RMB 237 billion. Adjusted EBITA is expected to rise by 32.5% to RMB 32 billion. This growth is supported by policies like trade-in programs and increased commission rates, potentially boosting domestic customer management revenue (CMR) with high single-digit growth.
The company's international commerce business is anticipated to continue its rapid expansion, with reduced losses. Driven by strong demand for AI products, Alibaba Cloud's revenue is forecast to grow by 18% to RMB 30.2 billion, with stable profit margins. CLSA maintains a "high confidence outperform" rating for Alibaba, setting a target price of $165 for its U.S. shares.
