NEW YORK (TheStreet) -- Yahoo (YHOO) shares are up 1.4% to $34.75 in pre-market trading on Monday after being upgraded to "overweight" from "neutral" by analysts at Piper Jaffray (PJC) who also raised its price target to $43 from $37.
The upgraded outlook stems from analysts belief that the company's stake in Chinese e-commerce company Alibaba is undervalued.
"We expect that as we get nearer an Alibaba IPO, a more realistic valuation should be reflected in YHOO," said the firm.
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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, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."