Citi Raises Target on Yahoo from Alibaba Valuation and 2 Other Hot Stocks to Watch
Yahoo Inc. (NASDAQ:YHOO): Current price $34.03
Yahoo shares are up around 1.75 percent Tuesday morning in heavy trading after Citigroup raised its price target on the stock from $31 to $39. Analyst Mark May wrote in a note to clients that he credited his increased valuation of Alibaba, in which Yahoo holds an ownership stake, along with ”raising our valuation for core Yahoo! based on recent strong user growth and search trends” plus higher valuation multiples for the peer group. May observed that “While pressure on Tier 1 ad prices could remain a headwind, we believe that is already known and reflected, and there are encouraging signs that the new management team’s efforts are resulting in improved user trends and mobile traction.”
Nokia Corp. (NYSE:NOK): Current price $6.62
Nokia reported that tax authorities in India froze its assets there last week because of a dispute over tax payments, but on Monday the company said it had regained access to its bank accounts in that country. On Wednesday, the Indian government authorities froze all of the corporation’s Indian assets as a type of collateral in case Nokia could not pay its future tax bill, which is estimated to be hundreds of millions of dollars. For its part, Nokia challenged the ruling and gained access to its bank accounts, but its local factories and other buildings are still frozen, blocking transfer to a new owner. Nokia said in a statement Monday: “We are now working closely with the tax authorities. Nokia has sufficient assets in India to meet its tax obligations.”
Alcatel-Lucent (NYSE: ALU): Current price $3.72
CEO Michel Combes will outline how The Shift Plan, Alcatel’s industrial transformation from a telecoms generalist to specialist in IP networking and ultra-broadband access, will leverage new technologies to step up the move to the cloud by service providers. Speaking at the opening of Alcatel-Lucent’s cloud research and development center near Tel Aviv, Israel, Combes is slated to discuss how these technologies will allow the networks of the future, supporting service providers, webscale firms, and large enterprises to satisfy consumer and business demands.