NEW YORK (TheStreet) -- Yahoo (YHOO) shares are down -0.9% to $34.51 on Tuesday after being downgraded by two different ratings firms after Chinese search engine Alibaba -- of which Yahoo owns a 22.5% stake -- reported first quarter earnings below analysts estimates.
Analysts at CRT lowered their price target on Yahoo's shares to $41 from $45, while analysts at Raymond James (RJF) lowered its price target to $40 from $43.
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TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAHOO INC (YHOO) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."