Bank Of America Raises Yahoo Price Target On Better-Than-Expected Alibaba Revenues

Analysts at Bank Of America raised the price target on Yahoo YHOO from $39 to $40.

Alibaba, which Yahoo owns 22.5 percent of, filed an amendment to its IPO prospectus on Wednesday. The amended form outlines a strong increase in second quarter revenues coming in at $2.54 billion, above the $2.31 billion estimates. Operating profit also beat expectations of $1.01 billion, reporting $1.10 billion.

Furthermore, Alibaba’s scale remains biggest in eCommerce sector. Justin Post stated, “Alibaba had 279mn active buyers and 8.5mn active sellers that generated $296bn (up 51% y/y) of gross merchandise value in the year ended June 30, 2014 (bigger than eBay + Amazon).”

Shares of Yahoo are traded recently at $38.29, up 0.29 percent