Yahoo shares climb after JMP upgrade
The Associated PressShares of Yahoo Inc. climbed Monday as a JMP Securities analyst upgraded the Internet company, citing a potential a boost from its search deal with Microsoft Corp.
"We expect Street estimates will be revised upward throughout 2010 as the impact of the company's Microsoft relationship will be incorporated into models," Sameet Sinha wrote in a note to investors.
In a deal that was recently cleared by U.S. and European regulators, Yahoo plans to use Microsoft's search technology in an attempt to boost its sagging profits.
Sinha raised his 2010 adjusted earnings before interest, taxes, depreciation and amortization estimates to $1.9 billion from $1.8 billion, and upgraded Yahoo to "Market Outperform" from "Market Perform." He established a price target of $21.
Shares of Sunnyvale, Calif.-based Yahoo rose 37 cents, or 2.3 percent, to $16.43 in afternoon trading. In the past 52 weeks, the stock has traded between $12.51 and $18.02.