Bernstein Raises Yahoo Price Target Due To Stake In Alibaba

Alibaba Group Holding Ltd BABA fell approximately 2.5 percent Tuesday despite positive comments from Bernstein.

Bernstein analyst Carlos Kirjner raised his price target on Yahoo! Inc. YHOO from $50 to $60 due to the company’s stake in Alibaba.

Kirjner noted that Alibaba has “potentially large” opportunities in areas of health and property insurance that are still untapped. Kirjner valued Alibaba at $350 billion; the current market capitalization is $285 billion.

Alibaba touched a low of $110.62, but found support and bounced back above $111.

Alibaba’s stock is up nearly 27 percent in the last month and some profit-taking may be expected.

Also in the news is that Yahoo CEO Marissa Mayer is trying to find a way to liquidate or spin-off the company’s $44 billion stake in Alibaba while minimizing a potential $15 billion tax bill.

Alibaba recently traded at $111.70, down 2.2 percent.