Bernstein's Carlos Kirjner, who has upped Yahoo (YHOO +2.9%) to Outperform, estimates a $190B valuation for Alibaba would mean Yahoo's 24% stake in the Chinese e-commerce giant is worth $24/share on a post-tax basis.
The estimate is well above the $100B-$120B valuations recently assigned to Alibaba. But it also comes two weeks after Yahoo disclosed Alibaba had Q2 revenue of $1.74B (+61% Y/Y) and net income of $717M (+145%), and in a year when valuations for fast-growing Internet names have surged.
Kirjner's Yahoo PT is now at $40. He values the company's 35% Yahoo Japan stake at $7/share, and its cash at $3/share. This implies a valuation of just $6/share for Yahoo's core business, for which Kirjner isn't assuming a turnaround.
Kirjner downgraded Yahoo back on Jan. 7; shares had risen 67% since then, thanks in large part to Alibaba IPO hopes.