Yelp (YELP) PT Lowered to $70 at Sterne Agee on Mixed Results
Sterne Agee analyst Arvind Bhatia lowered his price target on Yelp (NYSE: YELP) to $70.00 (from $85.00) following Q4 results but maintained a Buy rating.
Bhatia commented, "4Q was another mixed quarter with weaker-than-expected traffic trends, ALBA growth essentially in line but upside in revenue/adjusted EBITDA. Yelp reported 4Q Revenue / Adjusted EBITDA / EPS of $109.9M /$25.1M / $0.24 versus consensus of $108.4M / $24.5M / $0.07 and guidance of $107M to $108M / $24M to $25M. Management attributed traffic weakness to seasonality and indicated traffic trends in January have picked up. Strength in the performance of the oldest cohorts suggests underlying demand and long-term opportunity remain intact. Lowering 12-month target price to $70, which is based on 7x our FY16 revenue estimate."
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Shares of Yelp closed at $57.47 yesterday.