From Standard & Poor's Equity ResearchSTIFEL NICOLAUS KEEPS BUY ON YAHOO
Stifel Nicolaus analyst George Askew says Yahoo's (YHOO) fourth quarter was in line with guidance, fueled by aggressive cost cutting and impressive domestic search revenue growth. He notes adjusted EBITDA margins climbed to 39.4% in the fourth quarter, the highest level in eight quarters; $542 million adjusted EBITDA was well above his $518 million estimate and $508 million consensus forecast.
To reflect the company's conservative guidance, Askew cuts his $0.65 2009 EPS estimate to $0.56 and $21 target price to $19.
He believes Yahoo has considerable value locked within the company with little strategic focus; the catalyst for unlocking this value is new management and activist board members.
JEFFERIES RAISES ESTIMATES, TARGET FOR VISTAPRINT
Jefferies analyst Youssef Squali says VistaPrint's (VPRT) second quarter revenues came in at $139 million, exceeding $128 million consensus, while $0.53 normalized EPS comfortably beat the $0.39 consensus.
Squali notes while the weak economy and strong U.S. dollar continue to present headwinds to top line growth, VistaPrint's secular growth thesis remains strong, given: its appeal to small/micro businesses as a lower-cost print provider; potential for leverage in opex/capex under slowing growth, strong balance sheet, and free cash flow.
He raises $1.47 fiscal year 2009 (June) EPS estimate to $1.59, $1.79 fiscal year 2010 to $1.92, and $30 price target to $33.