Stifel Reiterates on Yahoo

In a report published Friday, Stifel analyst Jordan Rohan reiterated a Buy rating on Yahoo (NASDAQ: YHOO), raising its price target from $40.00 to $49.00.

According to the report, there were reports a few weeks ago of a delay in Alibaba's IPO (from 2Q14 until to 2015) -- that would be a clear positive for Yahoo as the Alibaba valuation continues to grind higher.

“In our new $49 target price, we are now incorporating a 50% probability that Yahoo's second tranche of Alibaba shares are distributed to shareholders tax efficiently,” the report said. “The extra time provided by a delay in the Alibaba IPO process could give Yahoo more time to effect a tax-free Split-and-Spin of the Alibaba stake.”

Some key points from the report included:

-Potential tax efficiency on Alibaba sale could add $10 to shares. -Alibaba IPO delay is beneficial for YHOO. -Chinese holiday eCommerce data should help 4Q13 Alibaba financials.

The analysts further noted that the biggest risk to YHOO remains that it doesn't return capital to shareholders and doesn't get full value for its interest in Alibaba group.

YHOO closed Thursday at $39.59.