Baird Remains Sidelined on Yelp (YELP) as Local Ad Strength Fuels 2Q Beat

August 10, 2016 7:48 AM EDT
Get Alerts YELP Hot Sheet
Price: $33.40 -2.77%

Rating Summary:
    19 Buy, 22 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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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."

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 $32.64 yesterday.

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