Yahoo! Inc. YHOO 0.64% shares have dropped less than 1 percent after the company’s mostly in-line Q1 earnings numbers. While the market seems to have shrugged off Yahoo’s Q1 performance, did Yahoo’s latest earnings report change the opinions of Wall Street analysts? Here’s what analysts from seven different firms had to say about Yahoo after a look at the company’s Q1 numbers.
Credit Suisse
Credit Suisse analysts agree with the market: Yahoo’s earnings were nothing to get excited about. Analysts expect that many investors will be looking for clarity on Yahoo’s divestiture of its Asian assets, and analysts remain in “wait-and-see mode” about Yahoo’s core advertising business. Credit Suisse maintained its Neutral rating and raised its target price from $66 to $68.
Morgan Stanley
Morgan Stanley analysts were “underwhelmed” by Yahoo’s numbers, but still see the company as a cheap way to invest in Alibaba Group Holdings Ltd BABA 0.28%. Morgan Stanley maintains its Overweight rating and $56 price target.
SunTrust
SunTrust analysts continue to like Yahoo’s valuation. At current prices, they see Yahoo’s Asian assets alone justifying Yahoo’s share price and therefore consider Yahoo’s core business as “free” to investors. SunTrust maintains its Buy rating and $59 price target.
B. Riley
Analysts at B. Riley were slightly disappointed with Yahoo’s Q1 numbers, but see several near-term positive catalysts for the stock, including a new search deal, Asian asset monetization, MAVENS growth and search share gains. Briley maintains its Buy rating and $51 price target.
JMP
JMP analysts were also disappointed by Yahoo’s Q1 numbers, but point to the Asian assets as the key to unlocking Yahoo’s full value. JMP maintained its Market Perform rating on Yahoo.
Cowen
Cowen analysts reduced their expectations for Yahoo based primarily on the falling value of its Alibaba stake and Yahoo’s challenging revenue growth outlook. Cowen maintained its Market Perform rating, but lowered its target price from $60 to $54.
CLSA
CLSA analysts see rising traffic acquisition costs continuing to be a major drag on revenue growth for Yahoo in the near future. CLSA maintained its Outperform rating on Yahoo, but lowered its target price from $52 to $49.
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