UPDATE 1-RESEARCH ALERT-Thomas Weisel cuts Yahoo; shares down
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June 24 (Reuters) - Thomas Weisel Partners downgraded Yahoo Inc (YHOO.O) to "underweight" from "market weight," and cut the stock price target to $18 from $28.
Shares of the company were down more than 1 percent in trading before the bell.
It could be difficult for Yahoo's stock to appreciate until there is major action as the company relates to organizational hurdles, product improvements and the reacceleration of organic revenue, Thomas Weisel analyst Christa Quarles said.
On fundamental basis, the outlook remains cloudy at best and potentially could worsen, Quarles wrote in a note to clients.
Yahoo, which is preparing a reorganization, has seen senior executives focused on search, e-mail and services such as photo-sharing, departing.
"If Yahoo can't retain or hire employees then it may not be able to execute on its long-term vision no matter how the company gets reorganized." Quarles said.
Yahoo shares were down 1 percent at $21.23 in trading before the bell, after closing at $21.45 Monday on Nasdaq. (Reporting by Dilipp S. Nag in Bangalore; Editing by Jarshad Kakkrakandy)
