Original title: Jefferies: Raising Alibaba's (9988.HK) Target Price to HK$300 Rating “Buy” Source: Gelonghui

Jefferies published a research report saying that Alibaba (9988.HK) has shown strong execution through multiple business models. With its strong technical strength, it is at the best time for recovery. The company's second-quarter performance is expected to recover strongly. The bank points out that Alibaba is the preferred stock and raised the target price from HK$294 to HK$300, reaffirming the “buy” rating, while the target price for US stocks was also raised from $300 to $307.

According to the bank, it is estimated that Alibaba's non-GAAP profit for the second quarter reached 35 billion yuan (RMB, same below). Overall revenue increased 27% year over year to 145 billion yuan, while core trade revenue increased 25% year over year to 125 billion yuan. By business category, customer management revenue is expected to increase by 18% year over year and commission revenue by 13%; digital media and entertainment revenue by 5%; and cloud computing revenue by 56%.

The bank also pointed out that it is estimated that Alibaba's adjusted EBITDA for the second quarter reached 45.5 billion yuan, and the EBITDA profit margin reached 31.3%. Alibaba has a high profit margin in the core market, which is a reliable cash cow, helping the company expand long-term business opportunities and enhance its ecosystem.