The firm increased the price target for the global technology company to $61 from $49.
Oppenheimer said its rating increase reflects the recent higher Alibaba Group Holding (BABA) valuation. The firm also said the BrightRoll acquisition should accelerate video monetization as well.
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"We believe YHOO shares are undervalued based on the valuation of Alibaba and Yahoo! Japan (YJ)," said Oppenheimer analyst Jason Helfstein. "Meanwhile, we see upside to core YHOO estimates based on improved affiliate relations and improved operations under new management."
Separately, 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 reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."