UPDATE: Bank of America Upgrades Yahoo! to Buy, Raises PT on Weaker Revenue Trends, Good Asset Value

In a report published Wednesday, Bank of America analyst Justin Post upgraded the rating on Yahoo!

from Neutral to Buy, and raised the price target from $25.00 to $28.00. In the report, Post noted, “Yahoo reported weaker revenue trends with ex-TAC revenues at $1.08bn below our $1.11bn (down 3% y/y excluding TIPLA fees), and the stock was down 4% to $22.80 in the aftermarket. However EPS at $0.38 beat street at $0.25 due equity interest income and using Yahoo's 1Q results, and Y! Japan 4Q results, we estimate that Alibaba profit was between $350-500mn in 4Q (up a strong 40-100% depending on impact of other undisclosed items). We think stock focus will quickly shift back to asset value and look forward to Yahoo's 10-Q filing (expected in May) where we will have better clarity on Alibaba's 4Q actual results.” Yahoo! closed on Tuesday at $23.79.