UPDATE: Bank Of America Downgrades Yahoo! Inc.

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In a note released Monday morning, Bank of America analyst Justin Post downgraded shares of Yahoo! Inc. YHOO from Buy to Neutral despite raising the price target from $40 to $46.

Post explained with the remainder of Yahoo's Alibaba Group Holding Ltd BABA stake being locked up for a year, the catalyst from the Alibaba IPO is in the rear view mirror. He also noted that Yahoo is no longer the best way to get exposure to Alibaba.

The $6 increase in Post's price target is due to Friday's higher closing price for Alibaba shares than he previously had modeled, as well as a "slightly" lower tax assumption.

Looking forward, Post is predicting an EPS of $1.37 for 2014 and $1.40 for 2015.

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Posted In: Analyst ColorNewsDowngradesPrice TargetAnalyst RatingsBank of AmericaJustin Post
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