UPDATE: Morgan Stanley Initiates Coverage On Alibaba

On Wednesday, analysts at Morgan Stanley initiated coverage on Alibaba Group Holding Ltd (NYSE: BABA) with an Overweight rating and $111 price target.

Angela Moh is bullish on Alibaba for multiple reasons:

• e-commerce Growth opportunities remain significant in China.
• Alibaba’s asset-light model provides scalability and strong cash flow to help it expand its competitive advantage.
• Opportunities in international e-commerce and the cloud suggest potential upside in the medium term.
• Premium valuation is justified by the company’s dominant position in a market with a long runway for growth.

Shares of Alibaba recently traded at $100.35, up 0.68 percent Wednesday morning.