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Yelp (YELP) PT Cut to $70 at Piper Jaffray Post Q4; 'Overweight' Maintained

February 6, 2015 7:48 AM EST
Get Alerts YELP Hot Sheet
Price: $39.40 +0.77%

Rating Summary:
    18 Buy, 23 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Piper Jaffray analyst Gene Munster lowered his price target on Yelp (NYSE: YELP) to $70.00 (from $90.00) following Q4 results but maintained a Overweight rating.

Munster commented, "Yelp reported 54% local account growth, 35% review growth, and 13% unique user growth; most of these metrics reported slight deceleration from the December quarter. Shares of YELP were down 10% in the aftermarket based on the 2015 revenue guidance in-line with the Street, but adjusted EBITDA guidance 16% below. While it's in vogue for internet companies to increase investment, investors are questioning the sales leverage potential from this increased spend; we believe it's too early to predict the sales growth leverage from this spending. We are maintaining our OW rating as the local market remains in its infancy (as evidenced by 84k local advertisers out of ~15-20M addressable local small businesses) and, most importantly, Yelp's local content is a defensible asset."

The firm lowered FY 2015 EPS from $0.24 to $0.14.

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 $57.47 yesterday.



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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

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Piper Jaffray, Gene Munster