Yelp (YELP) PT Raised to $43 at Needham & Company

Needham & Company raised its price target on Yelp (NYSE: YELP) to $43.00 (from $30.00) while maintaining a Buy rating following a Q2 beat and raised FY17 revenue and EBITDA guidance.

Analyst Kerry Rice comments, "Advertising growth, particularly self-service, was the key revenue upside driver. Yelp’s focus on retention, performance marketing, and product innovation, such as Request a Quote, as well as its efforts to fill its sales funnel with higher quality customers, paid dividends, leading to its 2nd highest net new adds and higher ARPA. Yelp also announced the sale of Eat24 to GrubHub, which should reduce costs and increase activity on Yelp's platform. With several revenue growth levers to still pull, including improvements in retention, monetization, sales productivity, as well as ongoing growth in Self-Service and National advertising and marketing optimization, we believe Yelp can deliver ~20% y/y revenue growth and increase profitability."

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