NEW YORK (TheStreet) -- Alibaba's (BABA) stock price target was upped to $120 from $115 at Oppenheimer on Thursday based on the Chinese e-commerce company's stronger-than-expected 2016 second quarter results, reported early Wednesday.
The firm has an "outperform" rating on Alibaba stock, according to Barron's.
Revenue grew 55% year-over-year to $5.14 billion during the period, which was 2% higher than Oppenheimer's expectations, the firm noted. The boost was largely driven by mobile monthly active users, Oppenheimer added.
"We see this as a milestone for user behavior that should continue to drive BABA's growth through improved frequency/monetization," the firm said in an analyst note, Barron's reports.
Alibaba saw a 13% increase quarter-over-quarter in paying customers, which highlights "larger enterprise/government agency wins" through competitive security offerings, Oppenheimer noted.
Shares of Alibaba were declining in mid-afternoon trading on Thursday.
Separately, 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.
The team rates Alibaba as a Hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, the team finds that the growth in the company's net income has been quite unimpressive.
You can view the full analysis from the report here: BABA