Bank Of America Raises Yahoo Inc. Price Target On BrightRoll Acquisition


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


On Wednesday, analysts at Bank of America raised the price target on shares of Yahoo Inc. (NASDAQ: YHOO) from $48 to $55 and maintained the Neutral rating.

The changes to the price target are a result of Yahoo acquiring BrightRoll, Justin Post finds “the acquisition will enhance Yahoo’s video ad serving capabilities and put the company in a more competitive position with Facebook’s LiveRail, AOL’s Adap.tv and YouTube.”

The acquisition gives Yahoo a piece of the rapidly expanding video advertising industry as BrightRoll “served more video ads and reached more consumers in the U.S. in 2014 than any other platform with tens of thousands of sites and mobile apps that send two billion requests daily to BrightRoll to monetize the inventory.”

Post expects the acquisition to be a small contributor to 2015 EBITDA, “Using Adap.TV and TubeMogul financials as a guide, we could expect ~50% growth in 2015 and possibly up to 10% EBITDA margins. This would equate to $15-20mn in 2015 EBITDA, or a 2% boost to our $1.24bn EBITDA estimate.”

Shares of Yahoo recently traded at $49.30 up 0.5 percent.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorPrice TargetAnalyst Ratings