Citi released a report indicating that Alibaba (09988.HK) performed well during the November 11 Shopping Festival-Related, and with the increased adoption of its AI tool Quanzhantui, it is believed that the transaction volume and customer management revenue for the last quarter (the third quarter of the 2025 fiscal year) may exceed the bank's previous conservative assumptions, forecasting that customer management revenue will grow by 5% year-on-year, compared to the previous forecast of 3.7% year-on-year.

Citi predicts that Alibaba's total consolidated revenue for the third quarter of the 2025 fiscal year will be 277 billion yuan, growing by 6.6% year-on-year, with a net profit of 47.2 billion yuan under non-GAAP, while the market expects 277 billion yuan and 47.4 billion yuan, respectively.

The bank believes that due to rationalization of competition and the continuation of trade-in policies, this will translate into a slight acceleration in growth for the E-Commerce industry this year, as well as a trend of industry profit margins stabilizing to slightly better levels. Following the revision of forecasts, Alibaba's (09988.HK) Target Price has been slightly adjusted from 132 HKD to 137 HKD, while Alibaba (BABA.US) Target Price has been raised from 133 USD to 138 USD, maintaining a 'Buy' rating.