Yahoo (YHOO) shares are getting a lift this morning from ThinkEquity analyst Aaron Kessler, who today raised his rating on the company to Buy from Hold, asserting that the stock offers “attractive multiples combined with improving fundamentals.”
He notes that YHOO trades for 4x EV/estimated 2010 EBITDA, and 7x EV/estimated 2010 free cash flow.
Kessler offers a list of six potential catalysts for the stock:
- “Solid” Q2 results. He says checks find continued improvement in both display and search ads.
- Improving display monetization.
- Stabilizing search market share.
- Share repurchases.
- Improved “engagement.” He says the company is taking the right steps with increased social integration, an alliance with Zynga and the Associated Content deal.
- Improved cost structure.
YHOO this morning is up 30 cents, or 2%, to $15.20.
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