Stifel Lifts Target On Yahoo! From $33 To $41, Adds $7/Share Amid Higher Proposed Alibaba IPO
In a report published Tuesday, Stifel analyst Jordan Rohan raised his price target on Yahoo! (NASDAQ: YHOO) from $33 to $41. The analyst maintains a Buy rating.
Rohan's price target improvement comes on the heels of an updated sum-of-the-parts valuation. "We have updated our valuation assumptions for the two tranches of Yahoo's stake in Alibaba to reflect higher proposed valuation for the Alibaba IPO," Rohan said.
The Stifel analyst believes Yahoo!'s stake in the Alibaba IPO could add $7 to share prices because of tax efficiency implications. He noted, "Yahoo will likely reveal revenue and profit metrics for Alibaba, in which it has a 24% stake."
The research note comes ahead of Yahoo!'s quarterly results, expecting out on Tuesday of next week (Oct. 15th).
Shares of Yahoo! are trading down nearly 4 percent to around $32.86 at last check. Rohan's new price target implies potential upside of almost 25 percent.
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|Oct 2016||MKM Partners||Maintains||Buy|
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