CEO Marissa Mayer recent appointed Ken Goldman as CFO. Today’s coverage was based on a “sum of the parts analysis” to get to $22 now that the Alibaba stake sale is behind it. Goldman Sachs is also looking at the capital allocation ahead (that would be dividends and/or share buybacks). Another positive is that the value of the Yahoo! Japan stake has risen by about 30% since the end of May and that leads to a more attractive valuation ahead.
This call contrasts with two recent calls from BMO Capital Markets and Wells Fargo in recent days, both of which were only given “Market Perform” ratings.
We would note that the consensus analyst price target from Thomson Reuters is $18.20, and that still leaves some decent upside after the 1.4% gain to $15.82 seen so far this morning. Yahoo! has traded in a 52-week range of $13.11 to $16.79. What is surprising is that there have been only about 2 million shares traded so far this morning.
Yahoo! is tied very tightly to Microsoft Corp. (NASDAQ: MSFT) for search now, and it will be interesting to see how Marissa Mayer handles that relationship going forward. Analysts also have started hiking their price targets and expanding their earnings multiple ahead on Google Inc. (NASDAQ: GOOG) now that Google has taken out new highs.
Yahoo! has such a checkered past that investors just refuse to believe what they see here. That old $30 buyout almost certainly will never come back any time soon, and the company has gone through more management and directional changes than can easily be counted.
That being said, today’s $22.00 price target is a very aggressive one, considering that the highest price target is $22.00 according to Thomson Reuters.
JON C. OGG
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.