Yahoo: Estimates Up On Success Of Panama

Robert Peck, analyst at Bear Stearns, yesterday raised his revenue and EPS estimates for Yahoo (YHOO) for the first quarter and full year 2007. He also increased his price target on the stock to $35 from $32.

For the first quarter, he now sees revenue of $1.223 billion and EPS of 11 cents, up from $1.206 billion and 10 cents. For the full year he goes to $5.345 billion and 54 cents, from $5.213 billion and 51 cents.

Peck cited “increased confidence around the anticipated success of Panama throughout 2007 as well as the branded full year outlook.” Adds Peck:

Advertisers have been extremely satisfied with the new front-end system and click-through rates have increased since the launch of the new ranking model…We believe that Yahoo’s search business delivered improving results during the quarter as a result of the system.

Meanwhile, Jefferies & Co. analyst Youssef Squali yesterday said he sees the company reporting in-line to slightly better results for the quarter, “with financial uplift from Panama not likely” until the second quarter. Squali sees revenue of $1.218 billion and EPS of 11 cents in the quarter. He expects the company to provide conservative guidance, and says he is “slightly cautious” on the stock near-term, but maintaining a Buy rating and $38 price target.

Yahoo yesterday was up 11 cents at $31.27.

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