Yahoo's stock hits $19 for first time since 2010

The latest gains of Yahoo shares to about $19 extended a rally that has been gaining momentum in recent weeks as Yahoo Inc. buys back its own stock and more investors bet on CEO Marissa Mayer's ability to turn the company around.
By MICHAEL LIEDTKE Published: November 27, 2012
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Yahoo had spent $212 million buying back 13 million shares from Oct. 1 through Nov. 8, according to a recent regulatory filing, with $928 million spent so far this year.

Since Mayer made the buyback commitment, Yahoo's stock has climbed by nearly 20 percent. The shares hit $19 in Monday's early trading for the first time since April 2010.

Goldman Sachs analyst Heath Terry believes Yahoo's stock will climb even higher, as more investor enthusiasm builds for Mayer's turnaround strategy and the value of the company's remaining holdings in Asian Internet companies becomes clearer. Besides retaining a 24 percent stake in Alibaba, Yahoo owns 35 percent of Yahoo Japan. Terry thinks Yahoo's stock will get a boost from future buybacks planned by Yahoo.

In a Monday research report, Terry raised his price target for Yahoo's shares to $24 from $22. The price targets of 15 other analysts surveyed by FactSet range from $16.50 to $22.

After climbing to $19 in Monday's early trading, Yahoo shares closed at $18.75, up 18 cents.