MKM Partners Comes Out Bullish On Alibaba Group Holding Ltd

In a noted released Monday morning, MKM partners initiated coverage of Alibaba Group Holding Ltd BABA with a Buy rating and a $125 price target.

The firm provided the following list of positives for Alibaba:

• Booming Chinese eCommerce
• Dominant market position
• Robust growth coupled with low penetration
• Highly profitable business model
• Significant "hidden value" in the company's investment portfolio
• Option value in international expansion opportunities

MKM commented, "We would not be surprised to see the stock consolidate lower after Friday's 38% single-day gain but see BABA as a core holding for growth managers."