Goldman Sachs just added Yahoo to its "Conviction List" and raised its 12-month price target to $24 from $22.
The main reason is a simple one: "We believe the value of Yahoo!’s balance sheet assets and the core business are worth more than the current stock price"
Earlier this fall, Yahoo sold a $4 billion portion of its stake in Chinese Internet company Alibaba, and told shareholders that it would use the money to buy its own stock.
Goldman says that Yahoo has purchased 54.4 million shares this year for $860 million, and that it still has $2.8 billion left to spend. That's 76.5%.
Goldman also says it is "less pessimistic" about Yahoo's core business thanks to improved revenue per search and "our forecast for upcoming cost reductions.