Yelp (YELP) PT Raised to $43 at Needham & Company Following Strong Q3
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Needham & Company analyst Kerry Rice raised estimates and his price target on Buy-rated Yelp (NYSE: YELP) to $43.00 (from $42.00) following strong Q3 results. Meanwhile, the analyst sees several levers to sustained momentum into 2017.
Rice commented, "Yelp posted 3Q16 upside driven by accelerating Local Advertising with particular strength in self-service, as well as expanding leverage. We are raising our estimates to reflect the upside and momentum in Local Advertising. We are encouraged by the improving productivity of Yelp's salesforce, increase in self-service adoption, and growth in National Accounts revenue. We believe several levers exist to drive revenue upside, including ongoing productivity improvements, higher average revenue per account (ARPA), higher repeat and retention rates, and increased user engagement. As revenue scales and the shift toward more performance marketing coupled with initiatives encouraging higher advertising levels and reduce churn, we believe Yelp's EBITDA margin should march towards long-term target range of 35-40%."
Shares of Yelp closed at $32.48 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
- Yelp (YELP): 2 New Profit Drivers Could Drive Substantial Upside - Macquarie
- Jefferies Cuts Price Target on Eros Int'l (EROS) to $18 Following Multi-Year Deal
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!