Alibaba Group Holding Limited

Jefferies named Alibaba Group Holding its top pick in the China Internet sector, maintaining a Buy rating and raising its price target on the U.S.-listed shares to $192 from $190, with the Hong Kong-listed target moving to HK$186 from HK$184. The firm cited solid execution across multiple business segments and accelerating growth in artificial intelligence cloud services. Jefferies expects AI Cloud and Compute services revenue to grow over 50% year-over-year to RMB60.5 billion in the September quarter, with segment margin improving quarter-over-quarter to 12.3%, and forecasts cloud revenue to grow over 50% year-over-year in fiscal year 2028. Total revenue is estimated to grow 9.6% year-over-year, while cloud segment profit is expected to offset losses in AI Lab and Applications in the December quarter. On ecommerce, the gap between gross and net China marketplace revenue is narrowing and Quick Commerce losses are lower in September than in the June quarter.