Yahoo! (YHOO) PT Raised Post Q2 on Alibaba Valuation - Evercore
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Price: $52.58 --0%
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Evercore Partners analyst Ken Sena raised his price target on Yahoo! (NASDAQ: YHOO) from $27 to $30 following Q2 results after the close. The Equal Weight rating was maintained. The firm cited a higher Alibaba valuation for the raise.
Sena notes that within Yahoo's 2Q13 disclosure were financials for Alibaba in which Yahoo! revealed Alibaba's 1Q13 revenues to increase 71% y/y, or 700bps of growth acceleration y/y. In additions, Alibaba's EBIT margin was 51% compared with our 32% estimate and vs. 26% in the prior year. As a result they have increased Alibaba valuation from $90bn to $120bn.
On the quarter, Sena notes that core results were in-line and guidance was disappointing as Yahoo lowered its FY guidance for non-GAAP operating income by 12% and revenue by 1%.
The firm is lowering core estimates for Q3 and FY. Revenues and operating income reduce by 4% and 35% for 3Q13, respectively, to $1.08bn and $183.5mm. For the FY, they are also lowering OI by 8% to $1.07bn (23.6% margin). Finally,they have also reduced revenue and margin estimates in the outer years, effectively shaving $1 per share in value.
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 $26.88 yesterday.
Sena notes that within Yahoo's 2Q13 disclosure were financials for Alibaba in which Yahoo! revealed Alibaba's 1Q13 revenues to increase 71% y/y, or 700bps of growth acceleration y/y. In additions, Alibaba's EBIT margin was 51% compared with our 32% estimate and vs. 26% in the prior year. As a result they have increased Alibaba valuation from $90bn to $120bn.
On the quarter, Sena notes that core results were in-line and guidance was disappointing as Yahoo lowered its FY guidance for non-GAAP operating income by 12% and revenue by 1%.
The firm is lowering core estimates for Q3 and FY. Revenues and operating income reduce by 4% and 35% for 3Q13, respectively, to $1.08bn and $183.5mm. For the FY, they are also lowering OI by 8% to $1.07bn (23.6% margin). Finally,they have also reduced revenue and margin estimates in the outer years, effectively shaving $1 per share in value.
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 $26.88 yesterday.
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