Citigroup analysts estimate that Yahoo! shares trade at a 37% discount compared to Alibaba shares, and reiterated its "buy" rating on Yahoo! with its price target of $63.
Analysts at the banking firm said it is confident that the global technology company can execute a tax efficient monetization of its 15% Alibaba stake.
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Shares of Sunnyvale, CA-based Yahoo! are lower by 0.65% to $51.42 in late morning trading today.
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."