In a report published Tuesday, Oppenheimer analyst Jason Helfstein reiterated an Outperform rating on Yahoo! YHOO, and raised the price target from $27.00 to $30.00.
In the report, Oppenheimer noted, “Following better than expected 4Q Alibaba results, a 12-month extension of the MSFT Search Guarantee and the Tumblr acquisition, we are increasing our price target on Yahoo! to $30 from $27. We now estimate Alibaba's value at $72B and are removing the 14% time value discount, consistent with press reports of Alibaba moving towards an IPO in 2014. Increasing 2013E EBITDA by 3% to reflect the MSFT RPS extension disclosed in YHOO's Form 10-Q. Lastly, while the Tumbler acquisition is estimated at 10x 2013E sales, at the high end of internet valuations, we see this as a conservative attempt by YHOO to strengthen its mobile and social capabilities, while adding more younger users to its platform.”
Yahoo! closed on Monday at $26.58.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.