UPDATE: Piper Jaffray Upgrades Yahoo, Favors Stake In Alibaba
In a report released Monday, Piper Jaffray analyst Gene Munster upgraded Yahoo (NASDAQ: YHOO) from Neutral to Overweight and raised the firm's price target by 16 percent, from $37 to $43 per share.
Munster states that Yahoo is currently undervalued, along with its 23 percent stake with Alibaba. Alibaba is valued to IPO at $168 billion, with Yahoo increasing its Alibaba sum-of-the-parts valuation from its previous estimate of $22.3 billion to $28.7 billion.
Analysts at Piper Jaffray view Yahoo's core operations to be a challenge, but remain bullish on the company due to Alibaba projections.
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