Yahoo! Fans Expect to See Fireworks

When Citigroup Smith Barney analyst Lanny Baker cut his rating on Yahoo! (YHOO Quote) last week, he got a lot of attention for standing out from the crowd.

But when it comes to how he expects the company's stock to perform, he actually has a lot of company.

Shares in Yahoo!, which is set to report second-quarter earnings after the markets close Wednesday, have surged since the company reported unexpectedly good first-quarter results.

While the run-up inspired Baker to downgrade Yahoo! on valuation concerns -- a move that helped spark a retreat in Yahoo!'s stock price -- the majority of analysts writing on Yahoo! in recent days have been more bullish on the stock, keeping or even raising their positive ratings. They argue that the growth in Yahoo's revenue and earnings, supported by the Internet advertising comeback, justifies even further appreciation in the company's stock. ...