Yahoo! (YHOO) PT Raised to $49 at Oppenheimer
Oppenheimer analyst Jason Helfstein raised his price target on Outperform-rated Yahoo! (NASDAQ: YHOO) to $49.00 (from $40.00) on an increase in the value of BABA.
Helfstein commented, "We are increasing our target from $40 to $49 on the rise on in BABA since our last note (+18%), our assumptions that Yahoo-core is sold for 8x EBITDA, BABA stake remaining un-taxed, and YJ sold on a taxable basis. While Mavens growth is slowing (+7% y/y vs. +26% in 4Q) the company does appear to be executing on its plan to simplify products, reduce costs (sun-setting products, headcount reductions, office closures), and focus on higher margin ad-tech solutions around the company's web content and main verticals (news, sports, finance, lifestyle). This was reflected in higher than expected 1Q margins. We are also encouraged by commentary suggesting the accelerated time-line of strategic alternatives (reverse spin, spin-off of equity assets, etc.). FY guidance was unchanged."
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Shares of Yahoo! closed at $36.33 yesterday.