Oppenheimer Raises Price target on Yahoo! (YHOO) to $55; Reiterates Outperform

September 16, 2016 9:18 AM EDT
Get Alerts YHOO Hot Sheet
Price: $39.97 -0.57%

Rating Summary:
    20 Buy, 26 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 27 | New: 28
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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."

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 $43.99 yesterday.



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