Citing likely changes that will “unlock value,” Influential Wall Street analyst Brian Wieser has upgraded Yahoo’s stock to a “buy” from a “hold” rating.
“Yahoo’s situation has gone from bad to worse in recent quarters, with poor choices at both board and senior management levels compounding bad luck,” Wieser writes in a note to investors this morning.
He added that Yahoo’s upside comes from the fact that things can only get better:
“Activist investors are well-positioned to engineer changes in the coming months, or otherwise provoke management (or the board) to make changes or announce significant initiatives that would help to catalyze the stock’s price higher. At this point, virtually any change could help to unlock value.”
Wieser’s Yahoo buy rating comes with a cost, having reduced the company’s share price target to $36 vs. $37 previously, which is part of his rationalization for the stock’s “upside.”Yahoo’s upside comes in contrast to some downside for another popular Internet stock that has begun to wane in market valuation. Wieser dropped Twitter to a target price of $34 from $43 previously.