UPDATE: Piper Jaffray Raises PT on Yahoo! on Tumblr Acquistion

In a report published on Monday, Piper Jaffray analyst Gene Munster raised the price target on Yahoo! (NASDAQ: YHOO) from $21.00 to $27.00 with a Neutral rating.

In the report, Piper Jaffray noted, "Yahoo! acquired Tumblr, a blogging platform, for $1.1 billion in essentially all cash. According to a Forbes report, Tumblr generated $13 million in revenue in 2012. While Yahoo! did not give guidance for Tumblr, we believe the acquisition could increase top line growth from our current 1% estimate to 2% in 2013 and from 5% to 8% in 2014. It will take time to determine whether this acquisition will be successful for Yahoo!, but we believe today the takeaway is that this likely would not have been possible for Yahoo! under its leadership from the prior ~5 years. We continue to view CEO Marissa Mayer as positively changing the view of Yahoo! among the tech community with the potential for her to change the view of the rest of the world over time."

Yahoo! currently trades at $26.68.