Goldman Sachs has resumed its coverage of web portal Yahoo! with a 'buy' rating and a price target of 22 bucks.

"We believe the value of Yahoo's balance sheet assets and the core business are worth more than the current stock price and that capital allocation actions over the coming months will serve as the catalyst to drive that revaluation," Goldman Sachs analyst Heath Terry wrote in a research note.

"While we have long been more negative on Yahoo's prospects, the uncertainty of the Alibaba stake's value has been reduced, the company has a new CEO, and the Yahoo Japan stake has appreciated by 30% since May 21, creating a much more attractive risk/reward scenario."

For most of the past year, Yahoo has been trading in range between $14.42 and $16.29 per share.

By 16:35 on Thursday, shares of Yahoo were up 1.67% to $15.86.

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