UPDATE: Benchmark Raises AOL's PT

According to a research report published earlier today, Benchmark has increased AOL's

PT from $18 to $28. In the report, Benchmark explained, “Wow! AOL announced the sale of over 800 patents to Microsoft for $1.056 billion, or $10.67 per share in stock value. AOL will pay essentially no taxes. We increase our per share price target from $18 to $28 per share. We assume this sale will be reflected in the stock price quickly. We maintain our Hold rating. The patents revolve around Internet technologies such as advertising, search and mapping. AOL stated it intends to return a significant portion of the patent proceeds to shareholders but did not disclose the manner. The deal is expected to close before year-end. We believe a one-time cash dividend would be appropriate after the close of the deal. Proforma for the transaction, AOL has roughly $1.5 billion or $15 per share in cash.” Benchmark maintains its Hold rating on AOL, which is currently trading at $26.29.