Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

ABN Amro Lowers Yahoo! Rating to Reduce


Internet media company Yahoo! (YHOO) posted pro forma Q4 EPS of $0.13. The company lowered its revenue and profit outlook for 2001. ABN Amro downgraded its investment rating on the shares to reduce from hold.

Analyst Arthur Newman says Yahoo's 2001 outlook appears to be significantly worse than feared. He views the 5% sequential revenue increase in Q4 as disappointing, and does not see the trend turning around until Q3 of 2001, at the earliest.

Newman cut his $0.57 EPS estimate for 2001 to $0.38 and his $1.38B revenue forecast to $1.17B. At current levels, he believes the company still commands a substantial premium to other investment opportunities, which he expects it to rapidly shed. The analyst thinks the company could be appropriately valued "in the low teens." Given the downside potential -- and the lack of any catalyst for the foreseeable future -- he downgraded the shares.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus