Despite Exec Departures, Yahoo! (YHOO) Already Pricing in 'Worst-Case Scenario', SunTrust's Peck Says
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Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 7 | New: 4
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SunTrust Robinson Humphrey analyst Robert Peck weighed in on Yahoo! (NASDAQ: YHOO) after CMO Kathy Savitt left the company. Peck said while this suggests pressure on Ms. Mayer is increasing, the stock is already pricing in the worst-case scenario.
Peck commented, "Accelerating high profile executive departures suggest pressure on Ms. Mayer may be increasing. However, at current share prices, the market likely is pricing in the worst-case scenario. We think risk-reward is favorable, with upside potential from turning around the core, exploring tax-efficient monetization for the investments, and optionality around a leveraged equity shrink."
The firm maintained their Buy rating and price target of $40 on YHOO,
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 $31.43 yesterday.
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