SunTrust Robinson Humphrey Buy Yahoo! (NASDAQ: YHOO) price target of $40.00

SunTrust Robinson Humphrey analyst, Bob Peck, took a victory lap after Yahoo! (NASDAQ: YHOO) announced today that it is pausing the spin of Alibaba shares, and instead, considering other alternatives. Peck has made against the grain calls highlighting extremely high tax rates that could possibly effect the company. He highlights 3 scenarios for the stock:

Sell the Core - While many investors may simply apply a mid-single digit EBITDA multiple to value the Core, they believe the value is more intricate. One must assess cost & revenue synergies, and account for other assets like Tumblr, Flurry, BrightRoll, real estate, and the intellectual property. In a sum of the parts analysis he believes it is worth $6-8B of value.

Sell the Entire Company - Yahoo could sell the entire firm and Alibaba will be the most natural buyer given an overwhelming majority of Yahoo's value resides in its ownership of 384M BABA shares. He believes Alibaba could buy all of Yahoo at a 20% premium and still structure it as 5-10% accretive to its shareholders.

Cash Rich Tax-Free Split - Yahoo could exchange its Yahoo Japan or BABA shares for cash and a different asset in a tax free manner. There are many permutations of this option but it could be an interesting way for Yahoo to rationalize all of its assets.

No change to Buy rating or $40 PT.

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Shares of Yahoo! closed at $34.85 yesterday.