Yahoo Sinks After 4th-Qtr Report

Banc of America Securities analyst Brian J. Pitz was among those who cut price targets, lowering his to $26 from $36 in a Tuesday note to investors. But Pitz, who maintains Yahoo shares at "Buy," said Yahoo "continues to be a company in transition" and its shares are currently a good value for long-term investors.

Meanwhile, Stifel Nicolaus analyst George I. Askew lowered his first-quarter and 2008 estimates for the company but kept his "Hold" rating in a client note. The analyst predicted Yahoo's shares will be "stuck in purgatory" for at least the next few quarters.

"We believe the company remains in the early stages of its turnaround and revised strategy, and faces challenges related to its evolving leadership and organizational structure, aggressive competition and acquisition integration," he wrote.