Yahoo! Inc. (NASDAQ: YHOO) is trading higher after the announced departure (a firing no doubt) of Jerry Yang in all functions of the company he co-founded. After the resignation news, Gabelli & Co. has issued an opinion calling this clearly a positive. The report noted, “Apart from the $34 per share bid from Microsoft Corporation (NASDAQ: MSFT) that Yang denied, he is seen as the primary roadblock to real change (operational and strategic) at Yahoo!.
It further noted, “Yang’s departure likely reduces the hurdles to an all-out sale of Yahoo’s US business. It also makes a $16-17 Private Equity PIPE deal, which would have been a very large negative, less likely. This could also be the first step in a complete board shakeup which would be a positive.” As far as what Gabelli expects… EPS of $0.45 in 2011.
The firm also has a private market value of $28.00 per share and it continues to recommend a BUY rating. Keep in mind that a private market value is not the same as a formal price target. Thomson Reuters has a consensus price target of $17.77 as of today and that is after a 2.3% gain to $15.78.
JON C. OGG
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