I read the report and couldn’t figure out what changed their minds. To me, being a cynic and all, the commissars over at DB either are in possession of insider information and YELP has violated REG-FD, somehow. Or, they’re simply guessing.
Here is the note summarized by Briefing.com
Deutsche Bank upgrades YELP to Buy from Hold and raises their tgt to $33 from $26, reflecting stabilized salesforce productivity, more confidence in management, and improvements in ad units and systems bolstering their longterm outlook. They increase 2016 estimates to the high end of the guide, and see further upside potential in their Bull case. Beyond 2016, challenges remain, but they prefer to be long the shares for upside this year and better long-term optionality given increased confidence that new financial leadership at Yelp can help drive product and monetization innovation in 2017 and beyond.
How are they able to quantify salesforce productivity without getting wind of it via the company? YELP is one of my GARP portfolio members, just 1 of 15 stocks that I manage inside Exodus. Therefore, I am pleased that it’s higher. I just can’t figure out the rationale for the sudden bullishness.
Shares of YELP are higher by 5.7% today.
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I believe the analyst is correct, but that is a great question.
yelp is one of the few apps I allow on my phone. it was a god send during my RV camping around the US and Canadian national parks and sites.
but all tech is overpriced on the monthly time frame.
I love YELP..