NEW YORK (TheStreet) -- Yahoo! (YHOO) stock is up by 0.71% to $36.82 in afternoon trading on Thursday, after analysts argued that Starboard Value could succeed in replacing the technology company's board.

"Our assessment is that should a settlement not be reached, Starboard has a reasonable chance of winning the contest," SunTrust Robinson Humphrey analysts wrote in a note, according to Barron's.

"It is possible that the proxy advisory firms may not recommend voting for Yahoo's current board of directors in the event of a proxy fight," analysts noted, Barron's added.

Last week, Starboard Value, an activist investment firm that owns a 1.7% stake in Yahoo!, nominated nine candidates to replace Yahoo!'s entire board of directors.

In a letter to Yahoo! shareholders, Starboard Value said it was "disappointed with Yahoo's dismal financial performance, poor management execution, egregious compensation and hiring practices, and general lack of accountability and oversight by the board."

Separately, Yahoo! has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's strengths, such as revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins, and its weaknesses, including deteriorating net income, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: YHOO

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 article's author. 

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