UPDATE: Cantor Fitzgerald Reiterates on Yahoo as Muted Results Hide Improvements in Core

In a report published Wednesday, Cantor Fitzgerald analyst Youssef Squali reiterated a Buy rating on Yahoo YHOO, and raised the price target from $40.00 to $42.00. In the report, Cantor Fitzgerald noted, “Yahoo! reported in-line 1Q:14 results, but with Display showing signs of stabilization. After making significant progress in addressing people, products and traffic, management seems to now be making progress towards growing revenues again. In the meantime, prospects for an imminent Alibaba IPO and further buyback should continue to support the stock, in our view. We're adjusting our estimates and raising our PT to $42 from $40, mainly on better Alibaba results, which drive our Alibaba valuation to $184B, up from $153B previously.” Yahoo closed on Tuesday at $34.21.