UPDATE 1-Analysts bullish on Yahoo after Q3 tops expectations

mercoledì 21 ottobre 2009 18:14

 Oct 21 (Reuters) - At least one brokerage upgraded Yahoo
Inc YHOO.O and seven others raised their price targets on the
stock Wednesday, a day after the Internet company posted
third-quarter results that beat Wall Street estimates, helped
by improvement in advertising spending and cost cuts.
 Shares of Yahoo, the top U.S. seller of online display ads,
touched a new 52-week high of $18.02 in early-morning trade.
 S&P Equity Research raised Yahoo to "strong buy" from
"hold", and said potential positive catalysts for the company
include further product improvements and asset sales.
 A big chunk of Yahoo's third-quarter net profit, that more
than tripled year-over-year, came from the sale of its stake in
Chinese Web site alibaba.com. [ID:nN20456665]
 "Yahoo will participate in advertising recovery that is
already showing real traction on the Internet," Citigroup
analyst Mark Mahaney said in a note to clients.
 Yahoo had reported a 2 percent sequential increase in
quarterly U.S. display ad sales.
 Stifel Nicolaus analyst George Askew said Yahoo's new
leadership, which includes Chief Executive Carol Bartz and
Finance Chief Tim Morse, and its earnings operating leverage as
it closes non-core businesses are among the main drivers for
the company.
 Collins Stewart analyst Sandeep Aggarwal said focus on
behavioural targeting, operational efficiencies and a likely
upside from Microsoft Corp (MSFT.O: Quotazione) search deal will help Yahoo
in growth acceleration and margin expansion.
 Yahoo has undergone significant restructuring since Bartz
took over in January and has pulled the plug on underperforming
 "In our view, as Yahoo moves from a 'silo' driven culture
to a operationally nimble and efficient culture, it can expand
its margins," Aggarwal said in a note.
 Shares of Yahoo, the No.2 search engine in the United
States, were up 4 percent at $17.85 Wednesday on Nasdaq.
 Listed below are the price target changes and ratings by
the different brokerages on Yahoo shares:
 Brokerage               Price Target ($)   Rating
                          New      Old
 Citigroup                 22       21      Buy
 Collins Stewart           22       21      Buy
 Credit Suisse             18       14      Neutral
 Stifel Nicolaus           23       19      Buy
 RBC Capital Markets       22       19      Outperform
 S&P Equity Research       24       18      Strong buy
 Thomas Weisel Partners    18       16      Market weight
 UBS                       18       16      Neutral
 (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by
Pradeep Kurup)