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Fly News Breaks for June 16, 2016
YAHOY, BABA, YHOO
Jun 16, 2016 | 05:54 EDT
Citi analyst Mark May upgraded Yahoo (YHOO) to Buy saying the risk/reward is more compelling at current levels. He raised his price target for the shares to $43 from $38. The online content provider closed yesterday down 8c to $37.32. The stock at current levels implies a 30%-35% discount to the underlying market values for the company's stakes in Alibaba (BABA) and Yahoo Japan (YAHOY) as well as a $2B-$4B value for Yahoo, May tells investors in a research note. He sees upside from here driven by the sale/monetization of Yahoo for more than the $2-$4B implied price and a reduction in the "conglomerate (aka complexity) discount" as the company simplifies.