In a report published Wednesday, Bank of America analyst Justin Post reiterated a Buy rating and $39.00 price target on Yahoo (NASDAQ: YHOO).
In the report, Bank of America noted, “On Tuesday Alibaba Group (Yahoo owns 22.5%) filed an amendment to its IPO prospectus and reported with a higher valuation. Per filing, Alibaba has 2.33bn shares outstanding (Yahoo owns 524mn shares or 22.5%), and the filing suggests an internal fair valuation at $56/share (up from $50/share in April) for share based awards in July 2014 (which is pre-IPO and likely to go higher, in our view) or $130bn in total cap (up from $116bn). Per press reports, the deal is expected to price after Labor Day, and Alibaba did not update its filing with 2Q results.”
Yahoo closed on Tuesday at $35.52.
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