Deutsche Bank Reiterates Hold, $15 PT on Yahoo

Deutsche Bank maintains its rating of Hold with a $15 price target on Yahoo

following the company's in-line Q1. Deutsche Bank says, "Our PT is based on 6x 2012E ex-cash EPS of $0.60 (less interest inc. and equity investments) plus $11.73/share in cash and strategic investments, or 18x GAAP EPS and 14x PF EPS on 2012E, a discount to the internet media peer group trading at median 20x 2012 EPS, given its current state of business transformation. Downside risks include slowdown in ad spending, competition and slower adoption of new services; upside risks include strong ad growth, improved search and display pricing, better than expected Asian asset realization and high adoption rates of new services." YHOO closed at $15.01 on Tuesday.