Yahoo! (YHOO) Price Target Raised at Nomura on Alibaba

Nomura Securities analyst Anthony DiClement bumped his price target on Yahoo! (NASDAQ: YHOO) from $40 to $43 on Alibaba but maintained a Neutral rating.

"We now value Alibaba at $136bn, based on a ~22x 2015E P/E multiple applied to 2015E net income of $6.2bn, in line with our Asian counterparts’ valuation (highlights on page 3). We believe that Yahoo will attempt to monetize its stake in Alibaba in a tax-efficient manner: we expect it would monetize half (the first 12%) of its stake via Alibaba’s IPO, which would be fully taxed (~40%), and we then assume a 50/50 probability that Yahoo can avoid being taxed on the remaining 12% stake. In sum, we now believe Yahoo’s 24% stake in Alibaba is worth ~$22/share to 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 $33.40 yesterday.

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