Evercore has trimmed its Yahoo (YHOO -7.4%) PT to $39 from $40 in response to Alibaba's (ABABA) weaker-than-expected Q3 revenue. The firm has cut its Alibaba valuation by 5% to $150B, and now gives Yahoo's 24% stake a post-tax value of $22/share.
Evercore also isn't thrilled with Yahoo's soft Q1 margin guidance and lack of formal full-year guidance, though it is pleased Yahoo's total and mobile active user bases (exc. Tumblr) respectively rose 20% and 60% in 2013 to 800M and 400M. The latter is inflated some by pre-installed iPhone apps that don't feature Yahoo branding or ads.
Gabelli has cut shares to Hold. Though still giving Yahoo a $42/share sum-of-the-parts valuation, it doesn't see "a sufficient margin of safety" following the company's big 2012/2013 run-up.
Cantor has upped its PT to $40 from $38, but also observes continues to lose display and search ad share, and says "the clock is now ticking" for Marissa Mayer & Co. to deliver a turnaround. SunTrust remains bullish, upping its PT to $42 from $34 and estimating Yahoo's core business is only being valued at 3x EBITDA.
Meanwhile, TechCrunch reports Yahoo has acqui-hired enterprise app studio Tomfoolery. All four of the startup's co-founders will be joining Yahoo.
On the CC (transcript), Mayer admitted Yahoo's mobile revenue "is still not material" relative to the rest of its business, but insisted some of its ad products (Stream ads?) will work better on mobile than PCs.