The latest advertising software, project Panama, of Yahoo Inc. will definitely lift its sales arguing analysts at Merrill Lynch & Co. Further, Merrill analyst Justin Post has expressed his confidence that the shares of Yahoo Inc. are attractive despite a 35 percent price decline this year. At present, California based company Yahoo generates 4 cents per U.S. search query whereas Google generates 11 cents. However, Post has indicated that Yahoo is also likely to be benefited from the growth in branded, mobile and video advertisement.
Analysts seem to be pretty sure of the expected growth of Yahoo in the advent of the latest software Project Panama as they speculating the new software is expected to generate over $500 million revenue [25 cents in EPS] in next two years.
On the other hand, Merrill is also expecting that the company might take acquisition route to boost its existing business. Yahoo has recently approached Time Warner in its bid to buy America online after a year when a similar negotiation broke down.
In the meanwhile, Banc of America Securities analyst Brian Pitz has suggested last week that the shares of Yahoo may rise to $34 a year.
