Yahoo (YHOO) Stock Slips, BMO Raises Price Target
NEW YORK (TheStreet) -- Shares of Yahoo (YHOO) are falling 0.42% to $37.79 this morning, as analysts at BMO Capital Markets lifted their price target on the stock to $39 from $38.
The firm has a "neutral" rating on the Sunnydale, CA-based digital media company.
Yahoo reported 2016 second quarter earnings after the market close yesterday, with earnings per share of 9 cents on revenue of $1.31 billion. Analysts were looking for earnings of 10 cents per share on revenue of $1.08 billion.
BMO noted that the company did not update investors on the long-awaited sale of the company's core business, but that "all news reports point to completion in the near term." The firm added that Verizon (VZ) is the "most sensible" buyer.
"In light of continued challenging fundamentals, we believe expectations for proceeds from a core business sale should remain conservative," BMO said.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins.
However, TheStreet Ratings finds weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: YHOO
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.