Baird Raises Price Target on Yelp (YELP) to $40 Following 3Q

November 3, 2016 6:44 AM EDT
Get Alerts YELP Hot Sheet
Price: $41.12 +0.49%

Rating Summary:
    20 Buy, 22 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
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Baird reiterated a Neutral rating on Yelp (NYSE: YELP), and raised the price target to $40.00 (from $35.00), following the company's 3Q earnings report. YELP reported revenue of $186.2M, exceeding guidance of $180-184M driven primarily by local ad revenue outperformance, and accelerating ad revenue/account. 2016 guidance was raised to $709-$713M from $700-708M.

Analyst Colin Sebastian commented, "For the third consecutive quarter, YELP reported revenue/adjusted-EBITDA above the high end of guidance/consensus, with strength across all advertiser cohorts (self-service/SMB/national). With a more US-centric focus going forward, we believe YELP should continue to drive solid local ad growth into 2017, although enhanced local ad products from large-scale competitors likely remain an overhang. Given the stronger pace of product momentum and local advertiser monetization, we are incrementally positive on shares."

For an analyst ratings summary and ratings history on Yelp click here. For more ratings news on Yelp click here.

Shares of Yelp closed at $35.71 yesterday.

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