Investment banks have been optimistic about YELP’s prospects as of late. This morning, Needham is out with some bull porn for all of you YELP lovers out there.
Price target has been lifted to $34; hitherto, it was only $28.
Needham raises their YELP tgt to $34 from $28. Firm notes while growing its sales headcount remains a top priority, they are encouraged by mgmt’s increased attention to account mgmt and focus on national advertisers. They believe the positive impact of these initiatives is not reflected in models. However, they believe product innovation is even more important as high-demand products such as Request a Quote or Eat24 should not only enhance sales productivity but also improve retention. These products and the shift to CPC pricing transitions Yelp toward performance marketing and a more transactional business, which should enhance its value over time as it more clearly demonstrates its ability to add value to consumers and businesses. Thus, they recommend shares to investors.
The stock is only up 1.1% in the pre market.
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