Bernstein Says Yahoo Likely To Extend Gains On Alibaba IPO

Yahoo Inc. YHOO shares are likely to continue an upward tick over the next few days or weeks on expectation of gains from its holdings in Alibaba Group Holding, an analyst said Monday. Yahoo traded up more than 3 percent in Monday's morning session. Yahoo holds a 23 percent stake in Alibaba, and and expects to sell 121.7 million shares for up to $8 billion. It will continue to retain a 16.3 percent stake. Earlier, Yahoo had been expected to sell 140 million shares. Bernstein analyst Carlos Kirjner think's Alibaba's real value is higher than the $60 to $66 a share initial public offering price disclosed Friday. He said Yahoo holding on to the extra 18 million shares bolster's Yahoo's value. Bernstein, who rates Yahoo at Outperform, said Yahoo may deal with its remaining stake through a dividend, spin off or other method.