Nomura Securities Maintains a 'Neutral' on Yahoo! (YHOO); Monetizing Alibaba

Nomura Securities maintains a 'Neutral' on Yahoo! (NASDAQ: YHOO) price target raised from $14.00 to $14.50.

Analyst, Brian Nowak, said, "Yesterday, Yahoo! announced an agreement with Alibaba to sell a portion of its Alibaba equity stake back to the company. Yahoo! will sell up to 20% of its ~40% stake in Alibaba in a fully taxable transaction. Yahoo! intends to return “substantially all” of the sales proceeds to shareholders. After yesterday’s authorization for an incremental $5bn in share repurchases, we estimate that the company could buy back anywhere from 18% to 21% of its shares outstanding. We are updating our model and sum-of the-parts valuation for the transaction. Our 2012E/2013E EPS goes from $0.95/$1.00 to $1.04/$1.05."

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 $15.58 yesterday.

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