NEW YORK (TheStreet) -- Shares of Alibaba (BABA) were rising in early-afternoon trading on Friday as MKM Partners hiked the Chinese e-commerce giant's stock price target to $130 from $95 this morning.
The firm maintained its "buy" rating on the stock, citing new segment disclosures that influenced the firm to increase its value estimates for Alibaba's cloud and commerce businesses.
MKM now values Alibaba's commerce business at $94 per share and its cloud segment at $18 per share.
The firm said it remains bullish on the stock and believes Alibaba will be the "best performing large-cap" in the Internet sector.
Additionally, Alibaba's investment portfolio has "tremendous upside potential," the firm noted.
Ant Financial, or Alipay, is a major bright spot in Alibaba's portfolio, with its business valued at approximately $60 billion and discussion of an IPO in the first half of 2017. Alipay is a third-party online payment platform launched by Alibaba in 2004.
The company has invested in more than 100 companies, several of which are posed to be long-term winners, MKM added.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Alibaba's strengths such as its robust revenue growth, solid stock price performance and good cash flow from operations are countered by the fact that growth in the company's net income has been quite unimpressive.
You can view the full analysis from the report here: BABA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.