Market Overview

Stifel Reiterates Buy on Yahoo! on Potential Full Tax of Alibaba

Related YHOO
What's Dragging Down Google's Results? - Analyst Blog
Market Wrap For April 17: Mixed Earnings Drag The Dow Lower While S&P 500 & Nasdaq End Positive
Stocks Leap on Strong Data, Yellen Remarks (Fox Business)

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.

Posted-In: Jordan E. Rohan StifelAnalyst Color Reiteration Analyst Ratings

 

Most Popular

Related Articles (YHOO)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free