Citigroup Inc. Upgrades Yelp to Buy (YELP)
Yelp (NASDAQ:YELP) was upgraded by Citigroup Inc. from a “neutral” rating to a “buy” rating in a research note issued on Wednesday, TheFlyOnTheWall.com reports. The firm currently has a $64.90 price objective on the stock. Citigroup Inc.’s target price indicates a potential upside of 2.92% from the stock’s previous close.
The analysts wrote, “creates a buying opportunity.”Confident in near to long-term forecasts, and increased out-year estimates due to new total addressable market (TAM).Yelp is “early in penetrating its “serviceable TAM and, thus, can generate a 32% revenue CAGR over the next five years.”May estimates a 56% 5-year adjusted earnings per share CAGR given “TAM/revenue outlook combined with the inherent margins of the business model.”Yelp has strong strategic position in mobile and local Internet, an increasingly important segment.The Citi analyst estimates the TAM in the U.S. is 2.2 million and 2.1 million in Europe. “Even at these levels, we estimate Yelp’s U.S. penetration at only 3% and note that it only recently began to unlock opportunities in the UK/Europe,”
In other Yelp news, COO Geoffrey Donaker sold 25,000 shares of the stock on the open market in a transaction that occurred on Thursday, April 10th. The shares were sold at an average price of $69.79, for a total value of $1,744,750.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
Other equities research analysts have also recently issued reports about the stock. Analysts at Citic Securities Co., Ltd upgraded shares of Yelp from a “neutral” rating to a “buy” rating in a research note on Wednesday. They now have a $76.00 price target on the stock. Separately, analysts at CRT Capital upgraded shares of Yelp from a “fair value” rating to a “buy” rating in a research note on Wednesday, April 9th. They now have a $87.00 price target on the stock. They noted that the move was a valuation call. Finally, analysts at SunTrust upgraded shares of Yelp from a “neutral” rating to a “buy” rating in a research note on Tuesday, April 8th. They now have a $85.00 price target on the stock, down previously from $100.00. They noted that the move was a valuation call. Ten equities research analysts have rated the stock with a hold rating and twenty have assigned a buy rating to the company’s stock. Yelp has an average rating of “Buy” and an average price target of $87.88.
Shares of Yelp (NASDAQ:YELP) opened at 63.06 on Wednesday. Yelp has a 1-year low of $24.75 and a 1-year high of $101.75. The stock’s 50-day moving average is $82.44 and its 200-day moving average is $74.49. The company’s market cap is $4.500 billion. Yelp also was the recipient of some unusual options trading activity on Monday. Investors bought 25,689 call options on the stock. This is an increase of 174% compared to the average daily volume of 9,365 call options.
Yelp (NASDAQ:YELP) last issued its quarterly earnings data on Wednesday, February 5th. The company reported ($0.03) earnings per share for the quarter, meeting the analysts’ consensus estimate of ($0.03). The company had revenue of $70.70 million for the quarter, compared to the consensus estimate of $67.22 million. During the same quarter last year, the company posted ($0.08) earnings per share. Yelp’s revenue was up 71.4% compared to the same quarter last year. On average, analysts predict that Yelp will post $-0.04 earnings per share for the current fiscal year.
Yelp Inc connects people with great local businesses. Its users have contributed a total of approximately 36.
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