Analysts Offer Insights on Technology Companies: TrueCar (NASDAQ: TRUE) and Yahoo! (NASDAQ: YHOO)

By Jason Carr

There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on TrueCar (NASDAQ: TRUE) and Yahoo! (NASDAQ: YHOO) with bullish sentiments.

TrueCar (NASDAQ: TRUE)

In a report released yesterday, Andrew Bruckner from RBC Capital reiterated a Buy rating on TrueCar (NASDAQ: TRUE), with a price target of $17. The company’s shares opened today at $13.16, close to its 52-week high of $13.91.

According to TipRanks.com, Bruckner is a 3-star analyst with an average return of 5.7% and a 61.5% success rate. Bruckner covers the Technology sector, focusing on stocks such as Quotient Technology Inc, Rubicon Technology, and TripAdvisor Inc.

TrueCar has an analyst consensus of Strong Buy.

Yahoo! (NASDAQ: YHOO)

Cantor Fitzgerald analyst Youssef Squali reiterated a Buy rating on Yahoo! (NASDAQ: YHOO) today and set a price target of $51. The company’s shares opened today at $45.03, close to its 52-week high of $46.72.

Squali observed:

“Bloomberg/WSJ reported that Verizon and Yahoo have tweaked their agreement. The $250-300M reduction (all else equal) only reduces our SOP- derived PT for core Yahoo by ~$0.25 to $4.30. As a reminder, Verizon and Yahoo agreed to a $4.83B cash deal on July 25, 2016, and the most recent update from the 4Q16 earnings press release noted that “Yahoo continues to work with Verizon on integration planning for the sale of its core business,” but, “given work required to meet closing conditions, the transaction is now expected to close in Q2 of 2017″ (vs. Q1 previously). Importantly, the companies are discussing splitting any future liabilities resulting from the data breaches. Current BABA PT/updated valuation for YJ! more than offsets the reduced price. Updating valuations for BABA and YJ!, and using our $120 BABA PT in our SOP analysis for Yahoo (current price is $101/share), our BABA valuation increases by $1.50 to $36.06/Yahoo share.”

According to TipRanks.com, Squali is a top 100 analyst with an average return of 11.2% and a 69.3% success rate. Squali covers the Technology sector, focusing on stocks such as TripAdvisor Inc, Rubicon Project, and Leaf Group Ltd.

Yahoo! has an analyst consensus of Moderate Buy, with a price target consensus of $46.56.

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