Yahoo! Given Buy Rating at Stifel Nicolaus (YHOO)
Yahoo! (NASDAQ:YHOO)‘s stock had its “buy” rating restated by equities researchers at Stifel Nicolaus in a research report issued on Wednesday, AmericanBankingNews.com reports. They currently have a $40.00 price objective on the stock, down from their previous price objective of $41.00. Stifel Nicolaus’ price target indicates a potential upside of 19.83% from the company’s current price.
The analysts wrote, “Yahoo results were slightly below our estimates, and at the low end of the profit range; 4Q guidance was lowered. Our estimates moderate downward and PT decreases slightly from $41 to $40 on decreased Yahoo Core EBITDA estimates. The good news: 1) Alibaba’s fundamentals continue to impress: revenues +61% y/y to $1.74bn (a slight decel vs. +71% in 1Q), gross margins 74%, operating margins of 49% and net income margins of 41%. 2) Yahoo amended its agreement with the Alibaba Group to sell only 40% of its Alibaba stake concurrent with the offering, down from the prior 50%. 3) Yahoo may sell the remaining shares at its discretion, enabling the company to seek a tax efficient sale and a higher valuation. Yahoo may also choose to maintain the second part of the stake without selling it. Reiterate Buy based on potential Alibaba upside, $40 target.”
A number of other analysts have also recently weighed in on YHOO. Analysts at Credit Agricole upgraded shares of Yahoo! from an “underperform” rating to an “outperform” rating in a research note to investors on Wednesday. Separately, analysts at Oppenheimer raised their price target on shares of Yahoo! from $33.00 to $38.00 in a research note to investors on Wednesday. They now have an “outperform” rating on the stock. Finally, analysts at Evercore Partners reiterated an “equal weight” rating on shares of Yahoo! in a research note to investors on Wednesday. They now have a $33.00 price target on the stock, up previously from $30.00. Twenty-one equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company’s stock. Yahoo! has an average rating of “Hold” and a consensus price target of $30.55.
Yahoo! (NASDAQ:YHOO) traded up 0.36% during mid-day trading on Wednesday, hitting $33.50. 16,208,845 shares of the company’s stock traded hands. Yahoo! has a one year low of $15.74 and a one year high of $35.06. The stock has a 50-day moving average of $30.99 and a 200-day moving average of $27.37. The company has a market cap of $34.181 billion and a price-to-earnings ratio of 9.19. Yahoo! also was the target of unusually large options trading on Tuesday. Stock investors purchased 132,889 call options on the company. This represents an increase of approximately 186% compared to the average daily volume of 46,498 call options.
Yahoo! (NASDAQ:YHOO) last released its earnings data on Tuesday, October 15th. The company reported $0.34 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.33 by $0.01. The company had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same quarter last year, the company posted $0.35 earnings per share. Yahoo!’s revenue was down .7% compared to the same quarter last year. Analysts expect that Yahoo! will post $1.47 EPS for the current fiscal year.
Yahoo! Inc (NASDAQ:YHOO) is a digital media company.
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