UPDATE: Needham Downgrades Yahoo! to Hold, Sees Overhang Until Loeb Sells Remaining 20M Shares

Needham's Laura Martin downgraded Yahoo! Inc.

shares from Buy to Hold Tuesday morning, also removing the previous $31 price target. The analyst cited "implied higher risks" on the heels of Third Point's Dan Loeb selling half of his position in the company. Martin believes Loeb's sale could suggest the fund manager sees near-term upside over the near term limited given the possible overvaluation of the Alibaba stake as well as a chance the IPO could be delayed. Martin warned of a potential overhang for Yahoo! longs until Loeb sells his remaining position in the company and/or the now-open Board seats are filled. Shares of Yahoo! are down 1.5 percent to $27.45 at last check.