NEW YORK (TheStreet) -- Shares of Yahoo Inc. (YHOO) are lower by 2.15% to $40.05 in pre-market trading on Monday, following a ratings downgrade to "neutral" from "buy" at Bank of America/Merrill Lynch.
The firm said it lowered its rating on the global technology company as it believes the company lacks near term catalysts following the Alibaba (BABA) IPO.
Yahoo was also downgraded to "market perform" from "outperform" at Bernstein, based on a valuation call and the Alibaba IPO.
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Separately, 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 few notable 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, solid stock price performance, good cash flow from operations, expanding profit margins and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: