Yahoo's price target was raised to $30 from $27 by Goldman Sachs on Tuesday. The increased price target was due to an increase in estimated value for Alibaba to $70 billion from $35 billion as Yahoo Japan shares appreciate and growth continues to accelerate, Goldman Sachs analyst Heath Terry wrote. Goldman Sachs kept Yahoo on its Americas Conviction Buy List. Yahoo shares are up more than 1% premarket.
May 14, 2013 12:46PM
Cantor Fitzgerald today maintained a Buy rating on Yahoo! (NASDAQ: YHOO) and raised its price target to $30.00 (from $26.00). Analyst Youssef Squali increased Alibaba Group valuation to $86.6 billion at the mid-point.
"This new valuation implies ~12x EV/Rev. and 40x EV/EBITDA on our FY:13 estimates, which compare favorably to those of similarly high-growth Internet companies including LinkedIn (NYSE: LNKD) and Yelp (NYSE: YELP). This valuation translates into ~$12.5B for YHOO's 24% stake, after-tax, or an additional contribution of ~$3/share to our price target," said Youssef Squali.