Boston, MA 07/08/2014 (wallstreetpr) – Yahoo! Inc. (NASDAQ:YHOO) is receiving positive recommendations left, right and center with two important events ahead.
The company is expected to report its 2Q2014 earnings on July 15. The last time the company reported earnings on April 15, it exceeded consensus estimates on both EPS and revenue.
After reporting 2Q results, Yahoo! will be looking forward to Alibaba IPO. It owns a significant stake in the Chinese e-commerce giant and experts believe that the IPO will immensely benefit Yahoo! Inc. (NASDAQ:YHOO).
Therefore, based on the positive earnings expectations and the imminent boost from Alibaba IPO, Wall Street is recommending a Buy on the stock of Yahoo! Inc.
Out of the 32 analysts currently covering Yahoo! Inc. (NASDAQ:YHOO), the majority at 22 have a Buy recommendation on the stone, nine have a Hold view while one has a Sell recommendation. As such, the stock carries a consensus Buy recommendation and an average price target of $40.60 per share. The stock closed at $35.50 per share on Monday.
Experts weigh in on Yahoo
Scott Bauer, senior marketing strategist at Trading Advantage, recently discussed his bullish view on the stock of Yahoo! Inc. (NASDAQ:YHOO). He thinks the stock is in sweet, sitting on a win-win situation in terms of the small gab between the earnings announcement and the much-touted Alibaba IPO.
Yahoo (NASDAQ:YHOO) stake in Alibaba has been cited by various analysts as undervalued, and the IPO will unlock the real value in the stake, thereby boosting the stock.
Aging products
Yahoo! Inc. (NASDAQ:YHOO) recently announced abandoning of aging products, which have dropped in revenue contribution. The move will allow the company to gain singular focus on promising operations.
The company has witnessed its revenue and profits decline in recent years because of the heightened competition for online advertising dollars. As such, it is shaking up its system from management structure to product portfolio to increase revenue while maintaining efficient operation.
