Stifel Reiterates Buy on Yahoo! on Potential Full Tax of Alibaba
In a report published Monday, Stifel analyst Jordan E. Rohan reiterated a Buy rating and $41.00 price target on Yahoo! (NASDAQ: YHOO).
In the report, Stifel noted, “In our recent note on Yahoo which updated our sum-of-parts valuation to $41, we stated that it is conceivable that YHOO will distribute its Alibaba stake to YHOO shareholders tax efficiently. The company has acknowledged that it has dedicated resources to figuring out how to make this happen. In this note, we discuss the merits and challenges of three different alternatives, and conclude that a spin-off of Yahoo's Asian operations and stakes in Yahoo J and Alibaba would afford the company the greatest flexibility, while still avoiding tax on the gains in value of Yahoo's Asian assets.”
Yahoo! closed on Friday at $34.15.
Latest Ratings for YHOO
|Jul 2016||Morgan Stanley||Downgrades||Overweight||Equal-weight|
|Jul 2016||Credit Suisse||Maintains||Neutral|
|Jul 2016||Cantor Fitzgerald||Maintains||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.