Yelp (YELP) PT Cut to $37 at SunTrust Robinson Humphrey; Keeps 'Buy'
Get Alerts YELP Hot Sheet
Rating Summary:
18 Buy, 23 Hold, 4 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 16 | Down: 17 | New: 4
Join SI Premium – FREE
SunTrust Robinson Humphrey analyst Robert Peck cut his price target on Yelp (NYSE: YELP) to $37.00 (from $52.00) following results but maintained a Buy on risk/reward and reset expectaions.
Peck commented, ". We have been wrong on YELP. Our thesis had been predicated on much better Local, Brand, Transaction, International, and margin growth. Further, we are unnerved by Chairman Levchin’s resignation and several other concerns detailed below. However, we wonder if risk/reward is more favorable here with sentiment dire and forecasts being slashed (we cut 2015/2016 revenue 3%/9% and EBITDA 27%/36%), making for a better setup to meet/beat going forward. Core Local is still a >$400m run-rate business growing >40% into ever easing comps and Eat24 is a >$35m run-rate business growing >70%. Further, we still view Yelp as an acquisition target at an EV of $1.8b (ex $0.2b in NOLs). Our year-end 2016 target goes to $37 (shares down at $27.95 after-hours) from $52 based on 15x 2017 EBITDA, spot in-line with the peer group median (n=20, see page 4) and equating to 3x EV/sales."
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 $33.51 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AppFolio (APPF) PT Raised to $275 at KeyBanc
- Stifel Upgrades LeMaitre Vascular (LMAT) to Buy
- JPMorgan Downgrades Boyd Gaming (BYD) to Neutral
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
SunTrust Robinson Humphrey, Definitive Agreement, Robert PeckSign 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!