In Depth: The Alibaba IPO

Is Alibaba's $162.7B valuation 'too conservative'?

Alibaba IPO range 'conservative': Analyst

Alibaba Group, the Hangzhou, China-based Internet retailer behind what could be the biggest initial public offering for a technology firm in the United States, is seeking a valuation of up to $162.7 billion and could raise as much as $21.1 billion.

To one stock market observer, though, Alibaba's valuation is "too conservative."

Alibaba could seek a valuation of between $238 and $240 billion, putting its stock at roughly $100 a share, Henry Guo, a senior research analyst at JG Capital, told CNBC's "Squawk Alley" on Monday.

Workers at a handbag factory completing orders to be sold through the Chinese internet e-commerce site Taobao a division of Alibaba.
Mark Ralston | AFP | Getty Images

To make his case, Guo cited Alibaba's massive market share in Chinese e-commerce, not to mention its growth potential in China and international markets, and recent investments in emerging growth drivers, such as mobile and entertainment.

Read MoreWhat will Alibaba's IPO price be?

Buy in Alibaba frenzy?

It seems Guo is not alone in his bullishness on Alibaba either.

"This is a very dominant franchise. We think this is one of the best growth opportunities in the marketplace today," Channing Smith, a managing director at Capital Advisors, told "Squawk on the Street" on Monday.

Smith sees Alibaba fetching a valuation of around $220 billion, amounting to roughly $90 a share, citing expectations for the company to grow earnings and revenue "in the 30 percent range" for the next few years.

"Anything under $90, we think, is probably a buying opportunity," Smith said. "Once you get above $90 I think you have to be patient and wait."

Read MoreAs Alibaba readies for IPO, Cramer offers caution

Of course, not everyone is itching to get in on Alibaba's IPO.

"I doubt that we'll do very much," Larry Haverty, a portfolio manager at Gabelli Funds, told "Squawk on the Street" on Monday. "Our organization is largely a value investor, and we don't really like to participate in this kind of a frenzy."

—By CNBC's Drew Sandholm.