Market Overview

Attention Yahoo Investors: Alibaba Just Made Citi Analysts Change Their Mind About This

Share:
Related YHOO
What Happens To A Stock When An Activist Liquidates A Position?
Ross Levinsohn Is Cautious On Netflix Because Of Apple
Stay Away From Verizon (Seeking Alpha)
Related BABA
PreMarket Prep Recap, March 21: We Haven't Seen A 2% Correction Since The Election
Alibaba's Under-The-Radar Technical Breakout
Will A Market Rebound Unleash These Potential Breakout Stocks? (Investor's Business Daily)

Want an edge on trading Yahoo? Try this.

Get real-time trading picks from market-beating experts like the Steady Trader.

Citi Equity Research on Wednesday lowered Yahoo! Inc.'s (NASDAQ: YHOO) price target from $60 to $56 due to the recent selloff of shares of Alibaba Group Holding Ltd (NYSE: BABA). Citi maintained its Buy rating for Yahoo.

Analyst Mark May wrote, "We continue to view YHOO as a positive risk reward as the current valuation assumes that BABA's current equity price ($90/BABA share) plus that Yahoo's stake (the SpinCo) trades at a 10% discount to BABA (worth $32/YHOO share) and that core Yahoo! is worth 2x forward EBITDA and 4x FCF using our below-consensus estimates ($2/YHOO share)."

Citi expects Yahoo to report 2015 revenue of $4.26 billion and 2015 EBITDA of $1.04 billion, both below consensus estimates. However with Yahoo's strong cash position combined with numerous growth opportunities, Yahoo is still expected to provide a nice return to investors.

Shares of Yahoo closed Wednesday at $44.04.

Latest Ratings for YHOO

DateFirmActionFromTo
Oct 2016JefferiesDowngradesBuyHold
Oct 2016NeedhamDowngradesBuyHold
Oct 2016MKM PartnersMaintainsBuy

View More Analyst Ratings for YHOO
View the Latest Analyst Ratings

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Citi Mark MayAnalyst Color Price Target Analyst Ratings

 

Related Articles (YHOO + BABA)

View Comments and Join the Discussion!