Yahoo! Inc (NASDAQ: YHOO) has been in a bit of a bind lately as the signs of discord between management and shareholders grow apparent. The CEO ,Marissa Mayer, has recently visited New York City to discuss her vision and motives regarding Yahoo with potential investors to support and further her goals. It is largely understood that the management of the company doesn’t intend to sell the online search engine business of the company, which is in conflict with the shareholders’ opinion.
Mizuho Securities has decided to remain sidelined and tight lipped on the issue, and has reiterated a Neutral rating with a PT raised slightly to $32 from a prior $29. The multi-platform data provided by the comScore US has been analyzed at Mizuho which reveals that the monthly unique visitor count for the month of January has seen a 7% y/y drop. The drop in the month of December was 5%, while, November saw a 6% dip. As per New York Post, the BOD might look to add two starboard-appointed directors, which would be an important breakthrough in selling Yahoo.
Neil Doshi, analyst at Mizuho Securities, believes that the Street valuation is quite aggressive even after accounting for the possible cost cuts. The price target of $32 is to reflect an AOL premium take out multiple on Yahoo as the Merger and Acquisition certainty grows. The analyst believes that the Street valuation will have to be turned down a notch in order to fairly reflect the state of affairs as the core deterioration has become increasingly apparent as there lies little to no visibility for any upside.
The analyst opinion on the stock has eight Strong Buys, 16 Buys, 17 Holds and one Underperform rating as the stock is currently traded at $31.35 with an acquisition becoming more and more imminent