NEW YORK, Sept 20 (Reuters) - Deal-oriented speculators are being replaced by value investors at Yahoo Inc , according to a report in the Sept. 21 edition of Barron's.
'For those of us who remember Yahoo as one of the highest fliers of the dot-com bubble, it's odd to view it as a value stock. But it is,' said the financial newspaper.
Barron's, in its 'Plugged In' tech column, said that since the internet company reached a search deal with Microsoft in July, investors looking for short-term gains have dropped out. Value investors have taken their place because they see Chief Executive Carol Bartz slashing costs even more than expected and because Yahoo's nearly 40 percent ownership of Chinese trading firm Alibaba.com has been undervalued, according to the report.
Bernstein Research analyst Jeffrey Lindsay thinks investors have also undervalued Yahoo's search deal with Microsoft, saying the partnership is worth at least $3 per Yahoo share, said Barron's.
Lindsay recently upgraded the stock to 'outperform.'
'We had been feeling for some time that Yahoo was undervalued and a classic value play,' he said, according to the report.
Lindsay's target price for the stock is $21.
Yahoo's shares fell 5 cents on Friday to $17.47, just shy of a 52-week high set on Sept. 17, according to Reuters data. The shares have traded as low as $8.94 in the past year.
(Reporting by Lilla Zuill; Editing by Steve Orlofsky) Keywords: YAHOO/ (lilla.zuill@thomsonreuters.com;+1 646 223 6281) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'For those of us who remember Yahoo as one of the highest fliers of the dot-com bubble, it's odd to view it as a value stock. But it is,' said the financial newspaper.
Barron's, in its 'Plugged In' tech column, said that since the internet company reached a search deal with Microsoft in July, investors looking for short-term gains have dropped out. Value investors have taken their place because they see Chief Executive Carol Bartz slashing costs even more than expected and because Yahoo's nearly 40 percent ownership of Chinese trading firm Alibaba.com has been undervalued, according to the report.
Bernstein Research analyst Jeffrey Lindsay thinks investors have also undervalued Yahoo's search deal with Microsoft, saying the partnership is worth at least $3 per Yahoo share, said Barron's.
Lindsay recently upgraded the stock to 'outperform.'
'We had been feeling for some time that Yahoo was undervalued and a classic value play,' he said, according to the report.
Lindsay's target price for the stock is $21.
Yahoo's shares fell 5 cents on Friday to $17.47, just shy of a 52-week high set on Sept. 17, according to Reuters data. The shares have traded as low as $8.94 in the past year.
(Reporting by Lilla Zuill; Editing by Steve Orlofsky) Keywords: YAHOO/ (lilla.zuill@thomsonreuters.com;+1 646 223 6281) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
