Expect More Deals from Yelp (YELP) after SeatMe - Needham & Company

July 19, 2013 7:31 AM EDT Send to a Friend
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Price: $57.28 +1.06%

Rating Summary:
    24 Buy, 11 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 27 | Down: 26 | New: 17
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Needham & Company analyst Kerry Rice reiterated a Buy rating and $45 price target on Yelp (NYSE: YELP) Friday following the acquisition of reservation service SeatMe for $12.7 million.

"We believe this transaction, in combination with the recent launch of Yelp Platform, corroborates our view that Yelp is in a unique position to expand its
offerings and unlock opportunities in several large adjacent markets," Rice said.

The analyst believes Yelp will continue to unlock further opportunities by expanding the breadth of its offerings. "We believe a number of adjacent verticals such as event management, food delivery, payments, and SMB marketing services could be sizeable target opportunities for the company."

The contribution from the acquisition to 2013 results should be minimal, according to the firm. On a standalone basis, SeatMe is likely generating minimal revenues (less than $1MM). That said, the transaction could be impactful depending on integration plans.

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 $39.75 yesterday.


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