Why Yelp Analyst Valuations Are Becoming Much More Conservative

Media

Published: February 14, 2016 10:50 am

Last Updated: January 13, 2020 1:12 pm

Yelp Inc. (NYSE: YELP) reported its earnings last week and analysts absolutely piled on to the stock. The company also announced the departure of its chief financial officer at that time. Overall earnings disappointed.

24/7 Wall St. has gathered these analyst calls and made a montage showing how analysts viewed Yelp after it reported its fourth-quarter earnings. We have also included some highlights from the earnings report.

The company reported a net loss of $0.29 per share on $153.7 million in revenue. This compared to consensus estimates of a net loss of $0.03 per share on revenue of $152.3 million.

Yelp also gave guidance in which it expects first-quarter revenue in the range of $154 million to $157 million and full-year revenue in the range of $685 million to $700 million. The consensus estimates call for $155.55 million in revenue for the first quarter and $691.13 million in revenue for the full year.

24/7 Wall St.
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A few analysts weighed in on Yelp after earnings:

Axiom Capital has a Hold rating but lowered its price target to $18 from $25.
B. Riley raised its rating to Neutral from Sell with a $15 target price.
Barclays has an Equal Weight rating but lowered its price target to $20 from $25.
Cantor Fitzgerald has a Buy rating and lowered its price target from $45 to $38.
Credit Suisse maintained its Outperform rating and kept its $44 price target, based on sales force growth accelerating.
Evercore ISI has a Hold rating and lowered the price target to $20 from $26.
Goldman Sachs has Neutral rating and cut its price target to $18 from $26.
Oppenheimer maintained its Perform rating with lower earnings.
RBC Capital Markets has an Outperform rating and reduced its price target to $33 from $42.
Susquehanna has a Neutral rating and lowered its price target to $20 from $22.

Shares of Yelp closed Friday at $15.56, with a consensus analyst price target of $24.60 and a 52-week trading range of $14.53 to $52.51.

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