UPDATE: Oppenheimer Raises Price Target on Yahoo Due to Upside
In a report published on Tuesday, Oppenheimer analyst Jason Helfstein raised the price target on Yahoo (NASDAQ: YHOO) from $30 to $33 and maintained an Outperform rating on the stock.
In the report Oppenheimer commented, "While YHOO provided 3Q/FY EBITDA guidance modestly below expectations, we expect the shares to move higher as Alibaba results were better than expected and mgmt. reiterated its commitment to continue share repurchases. FY EBITDA guidance 6%/4% below our/Street estimates on Tumblr Opex; however, mgmt believes 4Q display revenue will benefit from improving traffic metrics and seasonal brand advertising strength. 1Q Alibaba revenue increased 71% y/y, while operating income was 62% above our estimate on higher margins. As a result, we now value Alibaba at $92B vs. $73B, previously. Lastly, management committed to an additional $1.9B in share repurchases."
Yahoo opened on Wednesday at $26.88.
Latest Ratings for YHOO
|Nov 2015||Boenning & Scattergood||Initiates Coverage on||Outperform|
|Oct 2015||Morgan Stanley||Maintains||Overweight|
|Oct 2015||Credit Suisse||Maintains||Neutral|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.