Zhi Tong Cai Jing·2025-09-11 06:10Core Viewpoint - The report from Jefferies indicates that Alibaba-W (09988, BABA.US) plans to issue $3.2 billion in zero-coupon convertible bonds, reflecting confidence in its future prospects, with the funds primarily allocated for cloud computing and international business [1] Group 1 - The issuance of convertible bonds is expected to lower the cost of capital compared to existing cash reserves [1] - Jefferies sets a target price of HKD 172 for Alibaba and USD 178 for its U.S. shares [1] - The dilution impact from the bond issuance is estimated to be limited due to Alibaba's market capitalization [1] Group 2 - The cloud computing business is anticipated to maintain rapid growth driven by AI demand [1] - The pop-up store business is expected to release synergistic effects as user experience improves [1]