Needham & Company Upgrades Yahoo! (YHOO) to Buy
Get Alerts YHOO Hot Sheet
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Needham & Company upgraded Yahoo! (NASDAQ: YHOO) from Hold to Buy with a price target of $48.00.
Analyst Laura Martin commented, "We downgraded YHOO in the middle of last year because we believed that holders who owned Yahoo as a proxy for owning Alibaba would sell their shares once Alibaba was investable directly. In addition, we worried that YHOO’s after-tax proceeds from the Alibaba sale would be spent making acquisitions whose value was risky (i.e., some cash could ultimately be worth zero). We are upgrading YHOO to BUY from Hold because: 1) holders of YHOO who actually wanted to own Alibaba are presumably now gone; and 2) Starboard has announced that it has acquired a significant stake in YHOO, which a) should aid capital allocation of the cash on YHOO’s books, and b) adds an urgency to YHOO’s turnaround that we believe has been missing since Third Point left the Board in July of 2013."
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 $40.66 yesterday.
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