Yahoo’s (YHOO) Profile Compelling: Barclays Capital (BCS)

Barclays Capital (NYSE: BCS) reiterated its Overweight rating on Yahoo! Inc. (NASDAQ: YHOO) based on the company’s substantial Asian assets, a potentially conservative operating margin and the anticipated rebound of display advertising.

The price target stands at $23, approximately 1.5 times the current trading price of $15.19. Yahoo currently trades at 4.5x 2010E EBITDA which is roughly 3 times below the average of larger entertainment and media companies.

Yahoo and Microsoft (NASDAQ: MSFT) have signed the agreement for their search partnership and are expected to receive a regulatory approval for the same in early 2010. Additional filings are expected but major changes to the terms of the deal are unlikely.