Bob Peck Has A Few Questions For Yahoo Heading Into Q3 Earnings

Yahoo! Inc. YHOO is scheduled to announce its third quarter results on October 18. Ahead of the report, SunTrust’s Bob Peck reiterated a Neutral rating and $42 price target on the stock, and shared 10 questions investors are (or should be) asking heading into earnings.

• 1. Could Verizon Communications Inc. VZ appeal to the MAC on the hacking and surveillance concerns to either negotiate the acquisition price or walk away from the transaction?
• 2. If the company did try that, would Yahoo be able to sue its acquirer to enforce the entire agreement?
• 3. In case of a scuttled deal, could Yahoo re-open the bidding process to other interested parties?
• 4. “If the current Core sale plan unravels, how close are we to completing the process on the reverse spin of the Core?”
• 5. How far along is Yahoo in the monetization process of its Yahoo Japan investment?
• 6. What are the conditions that Yahoo needs to fulfill to file the proxy?
• 7. When will the opportunity to return capital to shareholders arise?
• 8. How are fundamentals doing, taking into account the ongoing tech troubles, the reverse spin/ restructuring process, and the incomplete Core sale?
• 9. When will Yahoo provide some clarity on governance (after the Core sale)?
• 10. Has the management considered any “potential tax-efficient solutions to monetizing its Alibaba Group Holding Ltd BABA stake?

Shares of Yahoo closed Thursday at $43.68. The stock is up about 31 percent in 2016.