Yahoo! Inc. YHOO Tumblr unit, acquired for $1.1 billion in June 2013, is an under-appreciated asset that should become profitable next year, an analyst said Tuesday.
Topeka's Victor Anthony raised his price target about 5 percent to $60 a share, and 2015 earnings estimate for Yahoo 4 percent to $1.01 a share.
Anthony's higher estimate stems from Yahoo's recent plan to cut costs along with progress at Tumblr, and its recent $640 million acquisition of the video advertising concern BrightRoll.
Related Link: Tumblr: The Trump Card For Yahoo In 2015
Although more popular attention is focused on Facebook Inc's photo-sharing service Instagram, Anthony said the social networking site Tumblr will "elevate its status over the coming year" with its rising value and reflected in Yahoo's stock price.
Moreover, the company's likely announcement of plans for its Alibaba stake, expected prior to its fourth-quarter earnings release, will be a catalyst for the shares," Anthony said.
Yahoo changed hands recently down nearly 2 percent at $50.18.
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