Yahoo Shares Likely To Remain Volatile
Merrill Lynch has reinstated coverage of Yahoo! at “neutral.” Merrill said, “While Yahoo! should benefit from favorable secular trends and continues to be dominant in the Internet advertising industry, it is currently trading at a slight premium to its peers” and the current valuation provides “little room for further multiple expansion.” The research firm said Yahoo!’s increased emphasis on content could result in a higher future cost structure, leading to lower returns on investment. Shares “are likely to remain volatile” but Merrill said “there is good support for the shares at the current price given the expectation that online advertising will rise from 3.7% of total U.S. advertising currently to 5.3% five years out with Yahoo! likely to maintain or increase share.”
(source: Forbes)
Related Stories
POSTED IN: Yahoo
Recent Comments