Evercore ISI Reiterates Hold on Yahoo! (YHOO) Following IRS Decision

Evercore ISI reiterated a Hold rating and $38.00 price target on Yahoo! (NASDAQ: YHOO) following IRS's decision to tax the company's BABA spin-off.

Analyst Ken Sena commented, "YHOO released an 8-K after the close today indicating that the IRS would not grant a private-letter ruling with respect to its planned tax-free spin of its BABA stake. However, the IRS did not specifically rule if YHOO’s plan would satisfy the requirements to be tax-free or not, essentially moving the case into unchartered territory historically. As part of this, the company’s counsel at Skadden noted that the IRS decision not to make a ruling does not prevent them from recommending proceeding with the plan, though they have yet to formally do so."

For an analyst ratings summary and ratings history on Yahoo! click here. For more ratings news on Yahoo! click here.

Shares of Yahoo! closed at $30.90 yesterday.

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