NEW YORK (TheStreet) -- Alibaba (BABA) - Get Report  shares are rallying 3.7% to $78.39 on Thursday, changing direction from yesterday's losses after the e-commerce giant disclosed that the SEC was investigating its accounting practices. 

"Earlier this year, the SEC informed us that it was initiating an investigation into whether there have been any violations of the federal securities laws," the company stated.

While it was not clear as to what sparked the SEC investigation, the company said it will cooperate with authorities and that will adhere to its request to provide documents and information relating to the company's consolidation policies and practices, Barron's reports.

Evercore analysts are still confident in the company's future, reiterating their "buy" rating on the stock with a $98 price target this morning, an upside of 25%. 

Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C-.

The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Recently, 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 article's author.

You can view the full analysis from the report here: BABA

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