Wall Street Yawns At Yahoo's Restructuring Plan
Yahoo! Inc. (NASDAQ: YHOO) reported fourth-quarter results on Tuesday, prompting the equivalent of a yawn from Wall Street firms. The company is under increasing pressure to spin off core assets and optimize its mobile and search divisions.
It met the Street's non-GAAP diluted EPS estimate for the fourth quarter of $0.13.
'More Of The Same'
Many analysts found Yahoo's 2016 outline wanting, and did not mince words voicing their lack of excitement for the year's outlook.
Macquarie analyst Ben Schachter put it succintly: "YHOO is embarking on yet another turnaround plan. Given that we have covered the stock for 15+ years now, let’s just say that we are not going to give them the benefit of the doubt on this one." Schachter lowered his price target from $37 to $33.
Barclays analyst Paul Vogel was similarly stoic. "We don’t think there is anything in the announced restructuring and potential non core asset sales that will mollify activist investors," Vogel wrote. He maintained a $35 price target.
B. Riley analyst Sameet Sinha wrote that "the most important question for investors was if management will make a statement about sale of core assets," and he expects management to maintain their "reverse the spin" course and not sell core assets. Sinha lowered his price target from $35 to $33.
Yahoo shares got pummeled Wednesday, down nearly 5 percent on the day.
Latest Ratings for YHOO
|Oct 2016||MKM Partners||Maintains||Buy|
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