Yahoo! "buy," target price reduced

10/18/06 - Stifel Nicolaus

NEW YORK, October 18 (newratings.com) - Analysts at Stifel Nicolaus & Company maintain their "buy" rating on Yahoo! Inc (YHOO), while reducing their estimates for the company. The target price has been reduced from $33 to $29.

In a research note published this morning, the analysts mention that the company has reported its 3Q06 revenues and EPS broadly in-line with the estimates. The industry as a whole appears to be maturing and fragmenting, the analysts say. The EPS estimates for FY06 and FY07 has been reduced from $0.47 to $0.46 and from $0.68 to $0.58, respectively.