Shares of Yahoo! are up 2 cents at $19.78 in early trading after Stifel Nicolaus’s Jordan Rohan raised his rating on the stock to Buy from Neutral, with a $25 price target, writing that even without a “meaningful” revival in the core business, “We believe at its current buyback rate, Yahoo! should be valued in the mid-$20s before year-end and even higher after the Asian assets are monetized.”
Once Alibaba IPO advisors are announced two things you will observe: shorters will start to panic (notable shorters are dr.gloom and hotmodel) while Longs will start to get excited. Start countdown to $25 once these advisors are in placed.
Sentiment: Strong Buy
Someone just bought and someone sold 1,000,000 shares of Yahoo in the mid-19's in after-market today.
Yhoo is a $25 stock for many, many reasons (without being an aquisition) all on its own. It has the second largest Unique Vistors (after Facebook) who actually stay on the site (Financials, Sports, Mail, More) in the world and advertisers love that. FaceBook has hundreds of millions of UV's but a great swath are in third world countries and don't "buy" thing advertisers sell. Yahoo has the audience advertisers want. Yahoo just needs to mobilize faster and faster.
Marissa is a great CEO. Add the Alibaba, Yahoo Japan and buybacks of stock and this is a simply great stock to own and hang onto and thereby enjoy the lower long-term taxable income gain as it climbs to the mid-twenties. It's a no-brainer. If you are a trader, then there are probably better stocks to dip in and out of or to play options with. But long term money? I'm there.
Finally, Yahoo will be bought by one of the usual suspects and when one makes a move, the others will want to as well, making a bidding war inevitable. And the stock will skyrocket so quickly it will be too late to get on board once that train leaves the station. Yahoo is the prettiest girl in the bar and it's closing time.
Sentiment: Strong Buy
Stifel Nicolaus upgrades Yahoo to buy and sets a $25 price target, contending the stock "should be valued in the mid-$20s before year-end, and even higher after the Asian assets are monetized."