(Updated - May 8, 2015 8:40 AM EDT)

Alibaba (NYSE: BABA) gained pre-market Friday after Goldman Sachs upgraded the stock from Neutral to Buy with a price target of $98.00 (from $97.00). The change follows the company's Q4 results and recent share price underperformance. Analyst Piyush Mubayi said Alibaba’s Q4 results set aside fears of slowing GMV growth and concerns on monetization.

"Post 4Q, with its impeccable track record of executing multiple businesses of enormous scale simultaneously, the ecommerce giant offers value and remains a direct exposure to spending moving online, particularly mobile. We raise our non-GAAP net income forecasts 5%-7% for FY16E-17E to reflect stronger monetization and rising visibility. We also introduce our FY18E at Rmb80.8bn or 49% non-GAAP net margin (46% in FY15)," said Mubayi.

The analyst added, "4QFY15 earnings have increased our confidence on the growth outlook of the business, as well as its cost management. We believe mobile growth, rising monetization rates, stable margins, Beijing’s broader consumption push, and MSCI inclusion should reward investor confidence."

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $86.00 yesterday.