SunTrust Robinson Humphrey Downgrades Yahoo! (YHOO) to Neutral

SunTrust Robinson Humphrey downgraded Yahoo! (NASDAQ: YHOO) from Buy to Neutral with a price target of $42.00 (from $44.00) on raised concerns.

Analyst Bob Peck commented, "A decision on the core sale could come in around July 18th. While we expect a positive result (~$6B in total), we think it could be a catalyst for “sell the news” for 4 reasons: 1) its widely anticipated, but may have higher contingencies given recent disclosures; 2) the process of liquidating investments (Y!J & BABA) is convoluted & complex; 3) the “hook" nature of BABA shares may lower takeout premium; and 4) it will likely take time (18 months?) to materialize, if it does at all. With this in mind, we lower our rating to Neutral from Buy and 12-month PT to $42 from $44."

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 $37.74 yesterday.

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