Alibaba Group was upgraded to buy from neutral at Goldman Sachs on Friday, a day after the company reported stronger-than-expected quarterly earnings. The brokerage also raised its 12-month price target on the stock to $98 from $97, implying a 14% return potential from Thursday's close. Analyst Piyush Mubayi said Alibaba remains in direct exposure to spending as it moves online, particularly on mobile devices. The brokerage raised its non-GAAP net income forecasts by 5% and 7% for fiscal 2016 and fiscal 2017, respectively, to reflect stronger monetization and improved visibility around the company's growth strategy. "We believe mobile growth, rising monetization rates, stable margins, Beijing's broader consumption push, and MSCI inclusion should reward investor confidence," said Mubayi. Shares of Alibaba traded 1.7% in premarket trade. They closed up 7.5% to $86 on Thursday, though they're still off about 28% from their November 10 high of $119.15.
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