Pro Analysis

Alibaba shares to rise almost 30 percent in one year as earnings top expectations, analyst says

Alibaba Group Executive Chairman Jack Ma.
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Alibaba Group Executive Chairman Jack Ma.

Investors should buy Alibaba shares because it will report financial results above Wall Street expectations, according to MKM Partners, which reiterated its buy rating on the China-based internet company.

Alibaba will release March quarter earnings on Thursday, May 18, before the market open.

"BABA reports FYQ4 earnings on Thursday ... We are expecting strong results driven by solid GMV [gross merchandise volume] growth and continued monetization gains," analyst Rob Sanderson wrote in a note to clients Tuesday. "We continue to see considerable value in the SOTP [sum of the parts] and think that continued strength in commerce is the catalyst for unlocking value."