Ge Long Hui·2025-09-25 01:37Core Viewpoint - Citigroup has raised the target prices for Alibaba's US and Hong Kong stocks based on optimistic expectations regarding cloud revenue and capital expenditures, driven by attendance at the Cloud Summit and anticipated growth in data center capacity by tenfold [1][3]. Group 1: Target Price Adjustments - Citigroup has increased the target price for Alibaba's American Depositary Receipts (ADRs) from $187 to $217 [3]. - The target price for Alibaba's Hong Kong shares has been raised from HKD 183 to HKD 215 [3]. Group 2: Revenue and Capital Expenditure Projections - Citigroup analysts, including Alicia Yap, project that the existing capital expenditure budget of RMB 380 billion will be deployed by the end of Q2 FY2028, faster than the previously estimated three-year timeline [3]. - The firm anticipates a compound annual growth rate (CAGR) of 29% for cloud revenue from FY2026 to FY2028, an increase from the previous estimate of 26%, while maintaining a conservative outlook on cloud profit margins [3].