0427 GMT - Alibaba's new AI technology, expected lower capex and strong cloud capability could trigger further re-rating of the stock, CGS International analyst Lei Yang says in a note. Alibaba's upgraded large language model Qwen2.5-Max shows strong comprehensive performance and AI capability. The company also recently made progress in its partnership with Apple for AI tools in China. CGS International says Alibaba's AI capability, large commercial customers and solid privacy policy give it strong competitive advantage. With AI startup DeepSeek's breakthrough, the analyst believes Alibaba could improve the cloud segment margin over the next two to three years. CGS International raises Alibaba's target price to HK$133.00 from HK$110.00 and keeps an add rating. Shares last at HK$118.20. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 12, 2025 23:27 ET (04:27 GMT)
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