Axiom Initiates Buy on Yahoo! Inc; Sees 19% Upside for the Stock

In a research report issued today, Axiom analyst Victor Anthony initiated coverage on shares of Yahoo! Inc. (NASDAQ:YHOO) with a Buy rating and a $52 price target, which represents a potential upside of 19% from where the stock is currently trading.

Anthony noted, “The market has, at multiple times over the past three years, inefficiently priced the shares of Yahoo. The market is again doing so, with an implied negative value for the core business, which we value at $6B. This is largely due to recent woes at Alibaba, which we believe could be overcome (see the companion Alibaba note), but has led to a precipitous decline in the share price over the past several months. The tax-free spin-off of the Alibaba shares, a potential monetization of Yahoo Japan further down the road, efforts to improve the core business, and the continued equity shrink are all sufficient reasons to own the shares.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Victor Anthony has a total average return of 18.9% and a 73.4% success rate. Anthony has a 16.3% average return when recommending YHOO, and is ranked #47 out of 3508 analysts.

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