Tigress Financial Initiates Coverage Alibaba Group Holding

Tigress Financial initiated coverage on Alibaba Group Holding Ltd BABA Friday with a Buy rating.

Analyst Ivan Feinseth cited “strong performance metrics, significant expansion opportunities internationally and within China, combined with superior margins and low operating cost structure” as the reasons for the positive rating.

Unlike Amazon.com, Inc. AMZN, Alibaba does not hold inventory and does not have to investment substantially on property, plants and equipment which contributes to higher margins, according to Feinseth.

The analyst note was also positive on Alibaba’s international growth opportunities, including emerging markets such as India as well as the United States. “The visibility from their IPO helped establish Jack Ma and Alibaba as a household name in the U.S. which is a positive marketing catalyst which we see facilitating long term success in the United States,” according to Feinseth.

On the mobile front, over half of China’s 600 million internet users are active on Alibaba, which Feinseth saw as making the company poised for growth as more consumers make purchases via mobile devices in China.

Alibaba Group Holding Ltd recently traded at $104.08, up 0.08 percent.