8 October 2026 Alibaba Group (BABA US) Buy: Shifting cloud into a higher gear Enhanced confidence in earnings: We lift BABA FY27-29e earnings by 3~6% due to stronger cloud growth and margin, and more resilient ecommerce profit also plays a role. However, we trim FY27e top line by 2% to reflect EU tariffs pressure on Cainiao and international e-commerce growth. Higher cloud estimates kick in to drive a modest uptick in FY28/29e revenue. For cloud, robust order pipeline boots our confidence driving better vis ...