Yahoo! (YHOO) Shares Approaching Trough, Cantor Fitzgerald Says; PT Taken Down to $56

Cantor Fitzgerald analyst Youssef Squali reiterated a Buy rating on Yahoo! (NASDAQ: YHOO) while lowering his price target to $56.00 (from $62.00), saying the stock is approaching a trough.

Squali commented, "We reiterate our BUY rating on YHOO but lower our PT to $56 from $62, reflecting our adjustment to BABA's PT to $95 from $110 post 2Q:15 results. Yahoo!'s current share price implies 1) 38% tax rate for its BABA stake, 2) BABA's fair value at $75/share and 3) ~4x EBITDA on core. While we would not disagree with the implied value on core, we believe that the implied tax rate for the spin-off shares is likely excessive (management is targeting tax-free status), and BABA's fair value likely to be well in excess of its current $75/share."

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 $35.69 yesterday.

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