USB Piper: Yahoo! Will Come Out on Top

Analyst Safa Rashtchy expects the media company to meet or beat his revenue -- and possibly earnings -- estimates

USB Piper expects Yahoo! (YHOO ) to come in at the high-end of Q2 revenue guidance.

Analyst Safa Rashtchy believes the advertising market hit a bottom in April. He says prices are stabilizing, and he expects the company to meet or beat his high on-Street revenue number of $180.1 million, coming in at the high end of its guidance. Rashtchy thinks Yahoo! may even be able to beat his high EPS estimate of $0.01 by a penny. He expects announcements on its enterprise, fee-based service before and on the EPS date (July 11). Rashtchy thinks upcoming announcements are likely to push stocks up, providing a trading opportunity. However, he remains cautious since long-term growth is not clear, and valuation is high. He rates shares neutral.

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