Yahoo Rising on Positive Bernstein Note

Bernstein Research analyst Carlos Kirjner released a not this morning upgrading Yahoo

from a Market Perform rating to an Outperform, while giving the company a $40 price target. The report dove into a sum of the parts valuation, focusing primarily on its overseas holdings. Kirjner stated that he believes the company's Alibaba stake is worth at least $24 a share, while the company's stake in Yahoo! Japan is worth an estimated $7 per share. Add in $3 per share for the company's cash sitting on its balance sheet and it leaves just $6 per share to be made up by Yahoo's core business, making the report come off as very bullish. Later in the report it was stated that a turnaround in Yahoo's business was not required to hit the $40 price target, making the trade more appealing according to Kirjner. Following the report, shares of Yahoo! rose 1.82 percent to $32.94.