Yahoo! Inc. (NASDAQ:YHOO) is currently in a phase of strategic change as its board of directors, which comprises largely of independent directors, has chartered an independent review committee to explore the strategic alternatives for the company. The company has reportedly engaged top-of-the-line consultancy firms, including JP Morgan and Goldman Sachs for financial advice.
For the past few days, there have been talks about the growing lack of interest by Yahoo’s top management regarding advances made by potential investors, hinting towards a growing insecurity and a deteriorating sense of duty. Furthermore, a decline in three major areas of business has continued over time. As such, it has led many analysts down the conservative and cautionary route.
SunTrust Robinson Humphrey analyst, Robin S. Peck pays little heed to the rumors, as he maintains the Buy rating for the stock with a price target of $40. He believes that the management will carry out its legal responsibilities of maximizing value for shareholders, essentially disregarding the concerns raised by a few parties. He further added that as per his observations, the board of directors has been diligent, having contacted 20 odd financial and strategic buyers. Although the management has been on the slower side, the analyst expects them to come through and assist the board in the maximization of value. He also advises the BOD to lead the charge and make up for the communication gap.
The analyst opinion on stock for the last month was 6 Strong Buys, 18 Buys and 19 Holds, with no Sell or Underperform ratings. The stock is currently trading up 2.31% at $30.14 as of 10:24AM EST on Feb 19.