Alibaba was upgraded to Overweight with a price target raise to $130 from $75, at Morgan Stanley

JP Morgan Chase & Co (NYSE: JPM) upgraded multiple Chinese internet companies, including Alibaba Group Holding Limited (NYSE: BABA) and Tencent Holding Ltd (OTC: TCEHY), to Overweight, Bloomberg reports.

"Significant uncertainties facing the sector should begin to slow down on the back of recent regulatory announcements" Margan Stanley

The policy developments since their mid-March call have been supportive, diminishing risks related to regulation, delisting of American Depositary Receipts, and geopolitics.

Alibaba was upgraded to Overweight from Underweight and the price target raised from $75 to $130, which implies upside of 49% from the most recent closing price of $85.71.