UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Yahoo! Following 10-Q Filing

In a report published Wednesday, Bank of America analyst Justin Post reiterated a Buy rating on Yahoo! YHOO, and slightly raised the price target from $28.00 to $29.00. In the report, Post noted, “Yahoo filed its 10-Q today which includes Alibaba Group's 4q results (a quarter in arrears). Alibaba had revenues of $1.84bn, up 80% y/y, an acceleration from 74% in 3Q, and for CY12, Alibaba Group's revenues were up 74% y/y to $4.9bn. Adjusting for a $550mn licensing fee in 3Q'12, Alibaba CY12 net income was $1.4bn, above our prior $1.15-$1.3bn estimate (which assumed $350-500m in 4Q net income). With Alibaba's CY12 gross merchandise volume (GMV) likely exceeding $170bn, we estimate a ~2% take rate (including ads, transaction fees, and listing fees). We believe the majority of this revenue is advertising based, with listing and transaction fees on TMall growing in importance and a potential for take rates to continue to move higher based on other comparable marketplaces.” Yahoo! closed on Tuesday at $26.07.