Needham & Company Reiterates a 'Buy' on Yahoo! (YHOO); Yang Resigns - An Era Ends
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Price: $52.58 --0%
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Yahoo! (NASDAQ: YHOO) price target of $19.00.
Needham analyst says, "YHOO’s shares should go higher because, with Yang gone, it is more likely that YHOO will sell off the Asian assets or sell itself completely. Either of these choices are good for public shareholders...Coming just two weeks after YHOO hired a new CEO, Scott Thompson, we believe that there was disagreement about what to do with YHOO’s 40% stake in Alibaba and its 35% stake in Yahoo Japan. Press reports say Yang wanted to keep them. Yang resigned today. We believe that this is a datapoint that YHOO is closer to selling these assets than the market assumes."
"Also, Yang's resignation is just 4 weeks shy of Feb 24, the date when shareholders can nominate rival directors to Yahoo's board. In fact, all nine Yahoo directors are up for re-election in 2012. There are press reports that YHOO has also been searching for new Board candidates to replace several directors, including Chairman Roy Bostock. Activist investor Dan Loeb's Third Point has threatened a proxy fight against Yahoo."
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 $15.43 yesterday.
Needham analyst says, "YHOO’s shares should go higher because, with Yang gone, it is more likely that YHOO will sell off the Asian assets or sell itself completely. Either of these choices are good for public shareholders...Coming just two weeks after YHOO hired a new CEO, Scott Thompson, we believe that there was disagreement about what to do with YHOO’s 40% stake in Alibaba and its 35% stake in Yahoo Japan. Press reports say Yang wanted to keep them. Yang resigned today. We believe that this is a datapoint that YHOO is closer to selling these assets than the market assumes."
"Also, Yang's resignation is just 4 weeks shy of Feb 24, the date when shareholders can nominate rival directors to Yahoo's board. In fact, all nine Yahoo directors are up for re-election in 2012. There are press reports that YHOO has also been searching for new Board candidates to replace several directors, including Chairman Roy Bostock. Activist investor Dan Loeb's Third Point has threatened a proxy fight against Yahoo."
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 $15.43 yesterday.
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