SunTrust started coverage of Yahoo! with a "buy" rating and a price target of $57. Analyst Robert S. Peck said that "while the core has struggled, the market is fully reflecting the weakness in legacy properties while giving little credit to some of the progress made more recently around: mobile, native, Tumblr, search, and video."
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Peck estimated that Yahoo!'s core business is currently being valued at less than 1x EV/EBITDA. "We think that while the core of Yahoo remains in turnaround, the risk/reward continues to favor owning shares at this level," the analyst wrote.
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TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAHOO INC (YHOO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."