Shares of the Chinese e-commerce giant Alibaba Group Holding Ltd (BABA) were rising over 3% during midday trading Friday after Needham & Company upped its price target on the company's stock to $190 from $155 while reiterating its "Buy" rating.

The firm's bullish call on the Chinese Internet company comes after it reported first quarter results, beating Wall Street estimates.

While Alibaba management reiterated full-year revenue guidance, Needham analyst Kerry Rice contends that given the growth in cloud and increased spending expectations the outlook may prove to be conservative, according to a note obtained by StreetInsider. 

Alibaba's outperformance was powered by its Core Commerce and Cloud businesses, as it grew to 1 million paying customers in the quarter.

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