Goldman Ups Yahoo Estimates

Analyst Anthony Noto thinks the web portal's shares can appreciate by about 15%

Goldman Sachs raised its estimates on Yahoo (YHOO ).

Analyst Anthony Noto says the $655 million net revenue, $260M EBITDA, and 9 cents GAAP earnings per share (excluding items) compare to his $647 million, $253 million, and 8 cents estimates, respectively. He says third-quarter growth and profitability reinforce his view that Yahoo is the largest beneficiary of key themes driving strong fundamentals for the Internet group.

He advises investors own or buy shares as he sees about a 15% appreciation potential. Noto says the fourth quarter and 2005 estimates remain conservative even with his upward revisions. He's raising his $2.52 billion 2004 revenue estimate to $2.55 billion, upping the $990 million EBITDA estimate to $1 billion, keeping the adjusted earnings per share estimate at 41 cents, and raising the 33 cents GAAP earnings per share estimate to 34 cents.