Yahoo Inc. shares rose 3% Thursday, after Bernstein upgraded the stock to outperform from market perform and said it is priced to fully reflect a worst-case scenario on a number of fronts. “The (almost) worst-case scenario sum-of-the-parts valuation is roughly the current stock price,” analysts wrote in a note. Bernstein is very bullish on Alibaba Group Holding Inc. , in which Yahoo owns a large stake, and has thus far deemed it better to invest in Alibaba directly instead of taking the risk of an indirect investment via Yahoo. However, taking Yahoo’s net cash into account, as well as Alibaba’s current stock price and Yahoo Japan’s current value, and its own below-consensus estimates for Yahoo’s EBITDA, Yahoo looks attractive, said the note. Yahoo shares are down about 30% in the year so far, while the S&P 500 has gained about 1.3%.
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