Yahoo To Receive ~$8.8b In Gross Proceeds From Alibaba IPO, Says Cantor Fitzergald
In a report published today, Cantor Fitzergald analyst Youssef Squali maintained a Buy rating on Yahoo (NASDAQ:YHOO) and gave it a $39 price target. This report followed Alibaba’s updated F1 on Friday after market closed, which included an initial price range and share count info for its highly anticipated IPO.
Squali says: “We estimate that at the mid-point, Alibaba’s proposed market cap is ~$158.3B (incl. green shoe,) with Yahoo!’s stake valued at ~$33B or ~$33/share pre-tax. While the ~$158B is below our estimated $180B, we note that 1) this valuation is likely to fluctuate with demand as we get closer to pricing, and 2) Yahoo! is only selling 140M shares in tranche #1, leaving 384M shares to be sold in a year+, likely at a higher valuation and on better tax terms”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 34.9% and a 83.6% success rate. Squali has a 13.9% average return when recommending YHOO, and is ranked #2 out of 3289 analysts.