Saturday, January 15, 2005
YAHOO Note
YHOO Notes
Piper Jaffray is positive on YHOO as their checks show that the search mkt is much stronger than previously thought, possibly showing as much as 25% sequential rev growth, well above the initial 15% est by the Street. On top of this, firm believes Yahoo! gained share in 4Q and is likely to be one of the biggest beneficiaries of the impressive growth in search. Finally, their brand advertising checks also point to continued sold-out inventories (especially on Yahoo!), increased prices, and demand by advertisers for more inventory even at higher prices. Firm believes the magnitude of this strength is significantly underestimated. Thus, they raise EPS and rev ests as following: for 4Q04 to $0.11/$778 mln from $0.10/$750 mln (consensus $0.11/$754.4), for 2005 to $0.49/$3.43 bln from $0.48/$3.40 bln (consensus $0.50/$3.4 bln), and introduce 2006 ests of $0.61 and $4.27 bln (25% YoY increase). Firm also raises price tgt to $45 from $38.
Piper Jaffray is positive on YHOO as their checks show that the search mkt is much stronger than previously thought, possibly showing as much as 25% sequential rev growth, well above the initial 15% est by the Street. On top of this, firm believes Yahoo! gained share in 4Q and is likely to be one of the biggest beneficiaries of the impressive growth in search. Finally, their brand advertising checks also point to continued sold-out inventories (especially on Yahoo!), increased prices, and demand by advertisers for more inventory even at higher prices. Firm believes the magnitude of this strength is significantly underestimated. Thus, they raise EPS and rev ests as following: for 4Q04 to $0.11/$778 mln from $0.10/$750 mln (consensus $0.11/$754.4), for 2005 to $0.49/$3.43 bln from $0.48/$3.40 bln (consensus $0.50/$3.4 bln), and introduce 2006 ests of $0.61 and $4.27 bln (25% YoY increase). Firm also raises price tgt to $45 from $38.
# posted by david chen @ 11:17 AM 
