Oppenheimer Raises Price target on Yahoo! (YHOO) to $55; Reiterates Outperform
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Oppenheimer reiterated an Outperform rating on Yahoo! (NASDAQ: YHOO), and raised the price target to $55.00 (from $48.00), as shares of BABA have appreciated 25% since late July 25. Oppenheimer also incorporated the $4.1B taxable basis of Yahoo! Core, disclosed in the proxy statement, into the analysis.
Analyst Jason Helfstein commented, "We are increasing our price target to $55, from $48, implying 25% upside potential, on the positive move in Alibaba's share price. We have also incorporated the $4.1B taxable basis of Yahoo! Core, disclosed in the proxy statement, into our analysis. We have no reason to believe at this point Yahoo!'s reincorporation into an investment company provides a tax advantage, but it necessary to comply with securities regulation laws. Our long-term thesis assumes that YJ shares are sold in the open market over the next 12-18 months at a 15% discount, with full tax consequences, that the IP portfolio is sold, and that the remaining BABA stake trades un-taxed at 10% discount to the public share price."
Shares of Yahoo! closed at $43.99 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades PennTex Midstream Partners, LP (PTXP) to Hold
- FBR Capital Raises Price Target on Matador Resources (MTDR) Following Announced Offerings
- UPDATE: Oppenheimer Upgrades Pandora (P) to Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!