Goldman Sachs reinstated coverage on Yahoo (YHOO) with a "buy" rating, saying the Internet company's stock is worth more than its current price after its stake sale in China's Alibaba Group and growth at its Japanese joint venture.
The brokerage set a price target of $22 on the stock.
Yahoo shares rose as much as 2 percent to $15.92 on the Nasdaq on Thursday.
Liquidation of Yahoo's stake in Yahoo Japan is more likely now that the monetization of its Alibaba stake is already underway, analysts led by Heath Terry said in a note dated Sept. 26.
Yahoo's stake in Alibaba and its 35 percent holding in Yahoo Japan -- jointly owned with Softbank Corp -- are considered its most valuable pieces.
The U.S. Internet company said on May 21 that it would sell as much as half of its 40 percent holding in Alibaba for $7.1 billion.
Goldman Sachs analysts said the Yahoo Japan stake has appreciated by 30 percent since the Alibaba deal was announced.
"While user engagement continues to decline, the company lacks a mobile strategy and significant talent has left the company, Yahoo still has hundreds of millions of users, valuable web properties, and the financial resources to fuel a potential turn around over time," Terry said.