Pivotal Research Downgrades Yahoo! (YHOO) to Hold

Pivotal Research downgraded Yahoo! (NASDAQ: YHOO) from Buy to Hold with a price target of $41 (unchanged). Analyst Brian Wieser noted that the stock trades near his price target.

"Going the other direction in terms of market share, Yahoo – which peaked at around 20% share of global digital advertising between 2004 and 2006 – has around 3% share and falling. Potential buyers of the business undoubtedly have plans that would attempt to reverse this decline, although we think that bids will reflect more conservative (and realistic) expectations. Our model continues to place a value on the core business at $3.5bn excluding any cash. As our Yahoo price target incorporates current trading levels for Alibaba and Yahoo Japan less 25% discounts for illiquidity and uncertainty, we maintain our $41 price target on the stock. Given trading levels that are only 9% lower, we are altering our recommendation on the stock from Buy to Hold," said the analyst.

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 $37.74 yesterday.

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