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Atlantic Equities analyst James Cordwell upgraded Alibaba to Overweight from Neutral, saying the company’s Q1 report “clearly demonstrated” how Alibaba can leverage its scale to gain e-commerce share.

The recent strong execution likely also builds confidence in the company’s ability to execute on other long-term opportunities, such as international expansion, omnichannel retail, and the cloud, Cordwell tells investors.

He raised his price target on Alibaba to $215 from $130, saying he sees the stock’s valuation as reasonable despite its strong performance year-to-date.