Shares of Alibaba (BABA) - Get Report traded up over 2% Tuesday after the Chinese e-commerce giant's stock was upgraded to "Overweight" from "Neutral" at Atlantic Equities.

The firm hiked its price target on shares of Alibaba to $215 from $130, predicated on its ability to capture market share.

Alibaba's first quarter earnings beat demonstrated the Internet giant "can leverage its scale, data and resource" to grow its market share as it pertains to e-commerce, Atlantic analyst James Cordwell wrote in a note obtained by StreetInsider.

The company will also be able to drive continued ad revenue growth as it expands its e-commerce footprint, he added. Further, the stock's valuation is "reasonable" based on a sum-of-the-parts basis, and Cordwell anticipates continued upside.

On Wednesday morning, Alibaba stock traded up 0.1% to $174.70 per share.

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