Nomura Securities Maintains a 'Neutral' on Yahoo! (YHOO); Q2 Preview

July 13, 2012 7:55 AM EDT Send to a Friend
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Price: $36.38 --0%

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Nomura Securities maintains a 'Neutral' on Yahoo! (NASDAQ: YHOO) price target of $15.00 (from $14.50).

Analyst, Brian Nowak, said, "We maintain our rating but raise our PT by $0.50, largely owing to an increase in Yahoo! Japan’s equity value (up 17% since last pricing). For the second time in three quarters, YHOO will welcome a new CEO to the conference call (interim CEO Ross Levinsohn) and we will again be most focused on strategies the company plans to use to improve its traffic & monetization. A new CEO (and Board of Directors) opens many possibilities, and it is also unclear to us whether YHOO’s new plans will change its 20% long-term margin target laid out in 1Q:12. Near-term numbers seem achievable, as we are $0.03 (13%) above consensus EPS in 2Q:12. But for us, we need better visibility on how YHOO’s new management team intends to: 1) Continue its user trend improvements and, 2) Effectively monetize them to re-accelerate display advertising growth before looking to turn more positive. FY12E EPS from $1.04 to $0.96."

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 $15.69 yesterday.




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