Yahoo! (YHOO): 2Q16 Preview - Needham

Needham & Company analyst, Laura Martin, maintained her estimates for Yahoo! (NASDAQ: YHOO) 2Q16 and FY16. She expects 2Q16 net revenue of $822mm (down 21% y/y), at the lower end of YHOO guidance, and Non-GAAP EPS of $0.08 (down 51% y/y). For FY16, she estimates revenue of $3.42B (down 16% y/y), again at the low end of YHOO guidance, and Non-GAAP EPS of $0.44 (down 26% y/y).

No change to Buy rating or target price of $40/share, up 14% from current levels, on the expectation that the core business will be sold. This would create value as she expects perpetual tax deferred status should be afforded to the remaining Asian shares after the core business is gone.

For an analyst ratings summary and ratings history on Yahoo! click here. For more ratings news on Yahoo! click here.

Shares of Yahoo! closed at $37.99 yesterday.

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