UPDATE: FBR Initiates Yahoo!

In a note date July 15, FBR Capital analyst, William Bird initiated coverage on Yahoo! Inc.

with a Market Perform rating and a $37 price target. Bird wrote, "Yahoo is a proxy for Alibaba, and its proxy value is likely to fade, in our view, as it sells down a piece of its Alibaba stake." With the view that the Street now has a good understanding of the value of Yahoo's stake in Alibaba, Bird believes the focus will now switch back to Yahoo's fundamentals, which, he notes, may take time to turn around. Shares of Yahoo are down about 0.8 percent today, following the release of the FBR note.