RPT-UPDATE 1-RESEARCH ALERT-Citigroup cuts Yahoo post results

(Repeats to align table)

(Adds analysts' comments, share movement and background)

Jan 30 (Reuters) - Citigroup downgraded Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz)
to "hold" from "buy," to reflect uncertainty over the firm's
2008 investments and its continued share losses in the search
market, while six other brokerages, including Bear Stearns and
Banc of America, cut their price targets on the stock.

Shares of Yahoo fell more than 10 percent in trading before
the opening bell, after closing at $20.81 Tuesday on the
Nasdaq. Yahoo had, on Tuesday, posted a lower quarterly profit
and forecast 2008 revenue below Wall Street forecasts.

Citigroup analyst Mark Mahaney, who cut his target to $22
from $33, said the "real surprise" was Yahoo's earnings before
income, taxes, depreciation and amortization (EBITDA) view for
2008, noting that this was below 2006 and 2007 levels.

"We find the margin guidance particularly surprising given
that the company announced it was planning a mid-February
'strategic workforce realignment' that would trim headcount by
1,000," Mahaney wrote in a note to clients.

He said Yahoo's fundamentals may increasingly be hurt by
likely market share losses to its rival Google Inc (GOOG.O: Quote, Profile, Research, Stock Buzz).
Analysts expect Google to fare better in a downturn with its
dominance of paid search, a form of marketing where advertisers
pay when customers click on ads.

Mahaney, however, added that he rates Yahoo a "hold" and
not a "sell," partly due to the company's potential to be
acquired as well as its "still very large" Web presence.

Brokerage Oppenheimer also downgraded the stock to
"perform" from "outperform" and cuts its price target by $10 to
$20, according to a report on theflyonthewall.com. Reuters
could not immediately verify the report.

The following table has the price target changes on Yahoo:
BROKERAGE PRICE TARGET RATING

Current Prior
Banc of America $26 $36 Buy
Bear Stearns $24 $29 Outperform
Bernstein $24 $28 Market perform
Cantor $21 $30 Hold
Jefferies $28 $32 Buy
Lehman $22 $33 Overweight
(Reporting by Tenzin Pema in Bangalore; Editing by Anil
D'Silva)