After a speech by a mid-level IRS official raised questions as to whether the spinoff of Yahoo's (YHOO) Alibaba (BABA) shares would be tax free given rule changes, SunTrust does not believe that the IRS would use such an employee to communicate important news. The firm thinks that at current levels Yahoo shares already reflect a worst case scenario of a spinoff at a 40% tax rate, and the firm does not think this will occur. It believes that the stock's decline yesterday creates an opportunity for fundamental investors and it keeps a $59 price target and Buy rating on the shares.