Shares of Alibaba (BABA)  traded up over 2% Tuesday after the Chinese e-commerce giant's stock was upgraded to "Overweight" from "Neutral" at Atlantic Equities.

The firm hiked its price target on shares of Alibaba to $215 from $130, predicated on its ability to capture market share.

Alibaba's first quarter earnings beat demonstrated the Internet giant "can leverage its scale, data and resource" to grow its market share as it pertains to e-commerce, Atlantic analyst James Cordwell wrote in a note obtained by StreetInsider.

The company will also be able to drive continued ad revenue growth as it expands its e-commerce footprint, he added. Further, the stock's valuation is "reasonable" based on a sum-of-the-parts basis, and Cordwell anticipates continued upside.

On Wednesday morning, Alibaba stock traded up 0.1% to $174.70 per share.

Jim Cramer Reveals Why His Trust Didn't Buy Alibaba Shares

More of What's Trending on TheStreet:

If you liked this article you might like

Roku, Nucana and Other IPOs That Should Be on Your Radar in 2017

Alibaba Could Rally Another 27% After Already Doubling in 2017

Wall Street Deflates in Pullback After Fed Excitement, No Records for Dow

Markets Recede From All-Time Highs on Tech Selloff