Yahoo stock has received an Outperform rating from Boenning & Scattergood yet again. The sell-side report comes in wake of Yahoo’s announcement that it was forming a Strategic Review Committee that would aid the company’s management in exploring alternatives for its current business strategies even as the company pursues a reverse spinoff of its business.

Boenning & Scattergood’s analyst, Murali Sankar, gave Yahoo an Outperform rating and a target price of $39 expressing confidence that Yahoo’s search for strategic alternatives, could help unlock more than 50% discount on the company’s core business. According to Sankar, the company’s strategic alternatives route will help it unlock the value of its core assets especially in terms of real estate. Yahoo’s restructuring of its core business announced a three pronged approach including the spin-off and the restructuring, including a smaller workforce and the sidelining of non-core operations. Many of the company’s offices have subsequently been shut down and the analyst believes that Yahoo is looking for buyers. The sidelining of non-core operations would also mean that Yahoo is probably looking for buyers for some of its intellectual property.

Sankar pointed out that Yahoo’s valuation has declined quite a bit over the last year with multiple of EV to estimated NTM EBITDA falling from 12x down to 4x. However, the sale of the company’s core could be worth more than the modest $3.9 billion estimate, raising the implied valuation to 5.1x meaning equity value per share of $10.