[Morgan Stanley Lowers Alibaba's Target Price by 5% to $180, Expects Cloud Business Annual Growth to Accelerate to 45% by End of June Quarter] Jin10 News, July 9 – Morgan Stanley has reduced the target price for Alibaba (BABA.N) U.S. shares from the original $190 to $180, a 5% decrease, while reiterating its Overweight rating and view of Alibaba as a top pick. Morgan Stanley stated that with the recent pullback in stock price, the current valuation is attractive, equivalent to 13 times the price-to-earnings ratio for fiscal year 2028. The newly derived target price, based on the discounted cash flow method, corresponds to a price-to-earnings ratio of 23 times for fiscal year 2028. Morgan Stanley noted that due to increased contributions from the cloud business, revenue forecasts for fiscal years 2027-28 have been raised by 2-3%, though partially offset by lower revenue from the e-commerce business. EBITA forecasts remain largely unchanged. Morgan Stanley expects Alibaba's cloud business to achieve an annual growth rate of 45% in the first quarter of fiscal year 2027, which ends this June, and believes that cloud business growth will continue to accelerate in the coming quarters. Excluding certain one-time promotional expenses related to the Chinese New Year, Morgan Stanley estimates that Alibaba's other losses in the first quarter of fiscal year 2027 will narrow to RMB 16.5 billion. It is anticipated that, with the surge in token prices, expenses related to training the Qianwen model will remain significant. Total other losses for fiscal year 2027 are projected to reach RMB 72 billion.