More trouble lurks ahead for Yahoo (YHOO), Collins Stewart analyst Sandeep Agrawal warned this morning.

“We believe that the fundamentals at YHOO are deteriorating,” he writes in a research note. “On the one hand, economic headwinds and turmoil in the financial markets are causing weaker display ad revenues. On the other hand, changes with the minimum bid with search and a possible GOOG/YHOO deal are causing an outcry among many advertisers. To further complicate the situation is an ongoing loss of talent which might accelerate with renewed restructuring efforts. We don’t see any near-term upside in the shares of YHOO on a fundamental basis.”

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