Mizuho Securities Cuts Price Target on Yahoo! (YHOO) to $29 Following Weak 2016 Guidance

Mizuho Securities maintained a Neutral rating on Yahoo! (NASDAQ: YHOO), and cut the price target to $29.00 (from $32.00), following the company's 4Q earnings report. YHOO reported 4Q gross rev of $1.27b, 7% higher than the MSUSA and consensus estimate of $1.19b. The company laid out its 2016 Strategic Plan, which was not bold enough, in Mizuho's opinion. YHOO guided 2016 net revenue and EBITDA of $3.5b/$750m, below expectations of $3.8b/$846m.

Analyst Neil Doshi commented, "2016 will be another "restructuring" year. Yahoo posted a solid 4Q beat, but provided somewhat disappointing guidance for 1Q16 and 2016. More importantly, the company laid out its 2016 Strategic Plan, which was not bold enough, in our opinion. We wanted to see greater cost savings and potential margin expansion. Instead, Yahoo! will "double down" on Search, which we believe is a risky endeavor. Finally, Yahoo!'s fast growing MaVNS biz is expected to grow modestly in '16. We reiterate our Neutral rating as we don't see any near-term catalyst for the stock."

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 $29.06 yesterday.

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