Cantor analyst Youssef Squali weighed in with a few insights on Yahoo! Inc. (NASDAQ:YHOO), after the company and Microsoft Corporation (NASDAQ:MSFT) announced an agreement to amend their search partnership, a 10-year deal originally struck in 2009. The analyst also maintained a Buy rating on YHOO, with a $60 price target, given a compelling sum-of-the-parts valuation.

Squali noted, “The amendment essentially retains the underlying economic structure of the original agreement, but provides Yahoo! with greater flexibility, including selling ads directly on both desktop and mobile, potentially generating higher revenue. We view this announcement favorably, as it retains and builds upon the original search agreement, which was responsible for generating 35% of Yahoo!’s revenue in 2014. This announcement removes an “uncertainty overhang” on Yahoo!’s core search business, while providing for upside revenue potential over time.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 27.1% and a 76.0% success rate. Squali has a 16.3% average return when recommending YHOO, and is ranked #5 out of 3573 analysts.

Out of the 37 analysts polled by TipRanks, 24 analysts rate Yahoo stock a Buy and 13 rate the stock a Hold. With a return potential of 22.54%, the stock’s 12-month consensus target price stands at $54.74.

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