trending Market Intelligence /marketintelligence/en/news-insights/trending/GPDERLgBzw-oG9sIhte14Q2 content esgSubNav
In This List

Morgan Stanley analyst downgrades Yahoo after Verizon deal

Podcast

Next in Tech | Episode 101 Data on Datacenters

Blog

Insight Weekly: Recession risk persists; Banks pull back from crypto; 2022 laggard stocks rally

Blog

Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage

Blog

Insight Weekly: Inflation eases; bank M&A slows; top companies boost market share


Morgan Stanley analyst downgrades Yahoo after Verizon deal

Morgan Stanley analyst Brian Nowak downgraded his rating onYahoo! Inc. shares to"equal-weight" from "overweight," Benzinga reported July 26.

Nowak's ratings action comes a day after struck adeal tobuy Yahoo's operatingbusiness for about $4.83 billion in cash to integrate the assets withAOL Inc., creating anentity with a combined portfolio of more than 25 brands. The deal, which isexpected to close in the first quarter of 2017, does not include the MarissaMayer-led company's cash, the company's Alibaba Group Holding Ltd. holdings, Yahoo Japan shares,Yahoo's convertible notes, certain minority investments and Yahoo's noncorepatents.

Nowak, who reduced his price target on Yahoo stock to $42 from$46, said that while the risk/reward is balanced for now, the new Yahoo HoldCowould need to sell its stake in Alibaba in a tax efficient manner foradditional upside. The analyst thinks the next step for Yahoo should be to tryto close its Alibaba liquidity discount by selling Yahoo Japan.