S&P UPGRADES Yahoo From BUY to STRONG BUY

October 20 00:00 2011

New York, October 20 (RainbowNewsLine.com) – Analyst Scott Kessler of Capital IQ has upgraded Yahoo (NASDAQ: YHOO) from BUY to STRONG BUY, while raising his estimates for the company. The target price has been raised from $17 to $20.

In a research note published yesterday, the analyst mentions that the company reported its Q3 EPS ahead of the estimates and the consensus. Revenues ex-traffic acquisition costs declined 5%, given its alliance with Microsoft on search. The company’s display revenues are likely to have been stabilized while Yahoo extended its guarantees from Microsoft regarding revenue per search guarantees through 2013, the analyst adds. The EPS estimates for 2011 and 2012 have been raised from $0.70 to $0.85 and from $0.85 to $0.95, respectively.

 

  Categories: