Cowen Downgrades Yelp (YELP) to Market Perform

Cowen downgraded Yelp (NYSE: YELP) from Outperform to Market Perform with a price target of $25.00 (from $55.00) following disappointing Q2 results and outlook.

Analyst Kevin Kopelman commented, "Yelp reduced FY15 guidance by 5% for rev. and 30% for EBITDA driven by the inability to retain veteran salespeople, combined with continued lack of convincing ROI for a high-churn advertiser base. Yelp also decided to phase out brand ads. While usage remains intact and Yelp is progressing in delivery & reservations, we are downgrading to Market Perform on slower growth and weak profits."

The firm is lowering EBITDA estimates to $67M in FY15 (prior $96M) and $84M in FY16 (prior $143M).

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 $33.51 yesterday.

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