Yelp (YELP) Eat24 Deal to Drive Engagement and Higher Revenues - Needham & Company

Needham & Company analyst Kerry Rice was out positive on Yelp's (NYSE: YELP) acquisition of Eat24, saying the deal should drive engagement and higher 2015 revenue. The firm maintained a Buy rating and price target of $80.

Rice commented, "We believe Yelp's acquisition of Eat24 is positive as it not only provides a solution for thousands of restaurants on Yelp's platform, but also boosts revenue and is accretive in 2015. We believe this acquisition should further enable Yelp to close the loop with customers, as well as enhance daily engagement in the restaurant vertical by giving consumers the ability to execute on reviews' driven impulses.We view the deal terms as attractive given that Yelp is acquiring Eat24 at 3.7x 2015 revenue, a discount to GrubHub's multiple of 8.5x. We are raising our 2015 estimates to reflect the contribution of the acquisition.:

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 $42.17 yesterday.

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