Yahoo's shares declined $1.84, or 5.5 percent, to close at $31.79 Monday.
Yet the analyst is modeling Alibaba to be valued at about $8.8 billion, based on its initial public offering.
"We understand that Chinese market valuations are magnitudes higher than their U.S. counterparts, however, we believe the exuberance in this instance seems to be overdone as it relates to Yahoo's shares," she wrote.
Bolan also suggested that mutual fund managers may be selling off the stock, as they want to show they've held Yahoo shares through the month but are now unloading them since the price is declining.
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