0851 GMT - Alibaba's long-term outlook remains attractive after its new-share placement, according to Morningstar's Chelsey Tam in a research note. "Although Alibaba is placing shares below our fair value estimate, it is not materially destroying value at this price," the senior equity analyst says. The share sales alone would cut Morningstar's fair value estimate by 1.4%, she says. "The equity raise improves Alibaba's funding mix and lowers balance sheet risk," she adds. Long-term investors and insiders find the shares attractive, she adds. Morningstar trims its fair value estimate for Alibaba by 3% to 201 Hong Kong dollars a share and continues to view Alibaba's shares as undervalued. Shares closed at HK$118.47.