UPDATE: Topeka Capital Markets Initiates Coverage on Yahoo! with Buy Rating, $30 PT on Alibaba-Driven Valuation Upside

In a report published Monday, Topeka Capital Markets analyst Victor Anthony initiated coverage on Yahoo! YHOO with a Buy rating and $30.00 price target. In the report, Anthony noted, “We are initiating coverage of Yahoo! with a Buy rating and a $30 price target. We see meaningful upside in Yahoo!'s share price based on our valuation of Yahoo!'s stake in Alibaba Group. Further upside to our valuation for Yahoo! can be realized if Ms. Mayer succeeds in her turnaround efforts, which we view as pure optionality, and if management repurchases shares at a faster pace than we currently model. Downside to our valuation could be driven by deterioration in the core business and if Alibaba fails to realize the value we model in our SOTP valuation.” Yahoo! closed on Friday at $24.69.
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Posted In: Analyst ColorInitiationAnalyst RatingsTopeka Capital Markets
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