Boenning & Scattergood Starts Yahoo! (YHOO) at Outperform

Boenning & Scattergood initiated coverage on Yahoo! (NASDAQ: YHOO) with an Outperform rating and a price target of $41. Analyst Murali Sankar sees positive risk-reward.

"Yahoo Inc.’s core businesses are in the midst of a transition from legacy Search and Display advertising to areas of higher growth, but investor focus has mostly been on taxation related to YHOO’s investments in BABA and Yahoo Japan, which represent the majority of value in the stock. Current valuations may not reflect optionality of: 1) BABA spinoff taxation; 2) Mavens and Programmatic growth potential; and 3) YHOO’s strategic value. Risks related to execution and management turnover are high, while industry fears over ad-fraud and ad-blocking are not helping investor sentiment. On balance, we see the rewards outweighing the risks and initiate YHOO with an Outperform rating and a $41 target price," said Sankar.

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 $33.38 yesterday.

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