Yahoo! (YHOO) Weakness Creates Opportunity as Stock Already Reflects Worst Case Tax Scenario, SunTrust's Peck Says

SunTrust Robinson Humphrey analyst Robert Peck reiterated a Buy rating and $59 price target on Yahoo! (NASDAQ: YHOO) saying the IRS questions create an opportunity and the stock has already priced in a worst case tax scenario.

Peck commented, "Yesterday, headlines from a speech by Isaac Zimbalist, a senior technician reviewer at the IRS Office of Associate Chief Counsel, delivered at a D.C. Bar Association event raised questions on whether the spin of Alibaba shares from Yahoo! would be tax free based on potential rules changes. It is extremely unclear what exactly the IRS may be studying, or what impact it could have to Yahoo's proposed spin. We believe that ambiguous statements from a non-senior employee at a DC event is not how the IRS would communicate breaking or "material news." We think at ~$41 Yahoo! shares are already being priced at a worst case 40% tax rate scenario and we see this as a buying opportunity for investors."

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 $40.98 yesterday.

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