Baird Remains Sidelined on Yelp (YELP) as Local Ad Strength Fuels 2Q Beat
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Baird reiterated a Neutral rating on Yelp (NYSE: YELP), and raised the price target to $35.00 (from $25.00), following the company's 2Q earnings report. Revenue of $173.4M exceeded $169.1M estimates, while Local advertising revenue of $151.9M was also above consensus expectations of $147.8M. FY16 revenue/EBITDA guidance was raised to $700-$708M and $100-$105M from $690-702M and adjusted EBITDA guidance of $93-105M.
Analyst Colin Sebastian commented, "YELP reported Q2 revenue/adjusted-EBITDA above the high end of guidance and consensus expectations, with strength across all advertiser cohorts (self-service, SMB, national). While the local ad landscape is increasingly competitive, Yelp's platform is clearly resonating with customers (repeat rates at all-time highs, ARPU growing across all customer types). As such, we are incrementally positive on shares, but Maintain a Neutral rating with a new $35 price target as we further assess the sustainability of Yelp's growth trajectory."
Shares of Yelp closed at $32.64 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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