CITIC Securities: Maintain "Buy" rating for Alibaba(09988, BABA.US) with a target price of HKD 234

K-LinePoet · 2026-02-26T04:47:57+00:00

CITIC Securities believes Alibaba(09988,BABA.US)'s 25Q4 operational performance remains solid, with AI technology fully empowering the business. The gaming segment is performing well with a dual-wheel drive, while non-gaming businesses show clear differentiation. Looking ahead, the company has ample high-quality reserves, significant long-term growth potential, and maintains a "Buy" rating with a target price of $150/ADR and HKD 234 per share.

K-LinePoet

2026-02-26 04:47:57

Abstract generation in progress

CITIC Securities released a research report stating that Alibaba (09988, BABA.US) demonstrated steady operational performance in Q4 2025, with deep AI integration across all scenarios, highlighting sustained growth resilience. The gaming business continues to be driven by the dual engines of “long-term operation of classic IPs” and “globalization of new games,” with AI technology integrated throughout development, gameplay, and operations, becoming a key tool for efficiency improvement and increasing player engagement. Non-gaming businesses have shown differentiation, with Youdao’s AI-native strategy producing outstanding results. Looking ahead, with a strong pipeline of quality titles such as “Sea of Oblivion” and “Infinite,” and a strategic layout that combines globalization, multi-platform expansion, and AI integration, the company’s long-term growth potential is increasingly evident. The firm maintains a “Buy” rating and assigns a 2026 non-GAAP PE of 16x, with a target price of $150 per ADR in the US market and HKD 234 per share in Hong Kong.

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