It's not been a good year for Alibaba Group Holding Ltd BABA, which has declined 20 percent in 2015 amid concerns over counterfeit goods, performance and execution. Analysts at MKM Partners channeled Baron Rothschild ("buy when there is blood in the streets") in a bullish note on the Chinese Internet giant, noting that they "remain confident in fundamentals and encourage long-term growth investors to build positions."
In the near-term, monetization, fraudulent purchases and counterfeit goods could keep the stock weak. But better performance will attract more advertisers and better pricing "over time." On fraud, MKM argued that fraud occurs anywhere there is a large exchange of money, including in the U.S.
Related Link: Why Alibaba Is Still A 'Golden Goose'
Therefore, Alibaba remains "one of the most compelling large cap growth stories in any region or any sector." The analysts noted that they expect "decades" of secular growth in Chinese retail.
Alibaba was marginally higher in pre-market trading, gaining 0.3 percent to $82.60.
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