Stifel Nicolaus Upgrading Yahoo

Stifel Nicolaus is out with a research report on Yahoo!

to Buy with a $18 price target on shares. In a note to clients, Stifel Nicolaus writes, "We are upgrading shares of Yahoo! from Hold to Buy with an $18 price target. The likelihood of a buyout has increased to 80%, in our view. Interestingly, we believe the erosion in fundamentals, detailed in our last report, along with pressure from activist shareholders, has prioritized the outright sale of the company over the option to remain independent." Shares of YHOO are up 37 cents in pre-market trading to $14.33, a gain of 2.65% this morning.