NEW YORK (TheStreet) -- Shares of Alibaba Group (BABA) are up 3.06% to $109.23 after Pacific Crest analysts said the contribution from Ant Financial is "under appreciated" and could be valued up to $70 billion.
"Ant Financial encompasses Alipay, a small and medium-sized enterprise (SME) loan business and other financial service entities, of which Alibaba effectively owns 33%," analysts said.
"Alipay, in our opinion, is the largest contributor to Ant Financial and has seen accelerating total payment volume due to strong growth in payment activity off of Alibaba's Taobao and Tmall platforms," analyst Cheng Cheng said.
"We believe the current scale, growth and profitability of Alipay make a valuation case for Alipay of about $60 billion. Combined with the SME loan business, we believe these two pieces of Ant Financial are worth around $70 billion," analysts added.BABA data by YCharts