UBS Upgrades Yelp (YELP) to Neutral

(updating comment)

UBS analyst Eric Sheridan upgraded Yelp (NYSE: YELP) from Sell to Neutral with a price target of $26.00 (from $20.00).

The analyst comments "For the second quarter in a row, YELP mgmt demonstrated a few key themes through their earnings report – a) the end demand environment was better than feared (& continues to demonstrate sharper recovery dynamics from the March/April lows); b) very strong execution on managing expenses & investments (producing an outsized EBITDA beat; & c) LT initiatives to re-position the business to garner greater share of existing ad budgets, lean into eComm local verticals & increase the depth of advertiser participation all remain works in progress. While the end demand volatility will likely remain, we no longer see a negative skew to YELP shares and upgrade from Sell to Neutral and raise our PT from $20 to $26 on the back of raised estimates and higher multiples (more reflective of a mix of normalized growth and higher sustained margins)."

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 $24.20 yesterday.

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