UPDATE: Pivotal Research Raises Price Target On Yahoo On Model Updates Ahead Of 4Q14 Earnings

In a report published Wednesday, Pivotal Research analyst Brian Wieser reiterated a Hold rating on

, and raised the price target from $47.00 to $54.00. In the report, Pivotal Research noted, “Meanwhile, Yahoo's value seemingly couldn't be more removed from its core business if it tried, and the subjectivity associated with valuing its components remains challenging. Still, taking a range of scenarios regarding how the company will proceed (or not) with disposing its Asian assets into account, we are now using a lower overall tax rate on the value of Yahoo's stake in these businesses. This drives our price target up to $54 on a YE2015 basis vs. $47 previously. Almost as an aside, there is activity at the core business worth noting. Acquisitions of BrightRoll and Flurry last year could generate an incremental $150-$200mm in net display (ex-TAC) revenue and $400-$500mm in incremental gross revenue during 2015, although at a lower net profit margin than Yahoo's legacy business. As well, November's agreement with Mozilla should several hundred million dollars of gross search revenue, and probably some incremental net revenue, too. Our rating on Yahoo remains HOLD.” Yahoo! closed on Tuesday at $48.30.