Yelp Stock Advances, Price Target Raised at Maxim - TheStreet

Updated from 11:20 a.m. EDT

NEW YORK (TheStreet) -- Shares of Yelp (YELP) - Get Report  were rising in late-morning trading on Monday as Maxim hiked the San Francisco company's price target to $45 from $42. 

The firm reiterated its "buy" rating on Yelp stock, according to TheFly

Last week, Yelp announced that it was converting its dual-share class structure into a single class common stock structure. This action could remove a takeover obstacle, Maxim said. 

Google parent Alphabet (GOOGL), (AMZN) and Apple (AAPL) could all be potential buyers of the crowd-sourced review company, the firm added. 

Additionally, Cantor Fitzgerald said Yelp has become an easier takeover target after it converted shares because it reduces insider control. 

The firm has a "buy" rating and $42 price target on Yelp shares, according to Barron's

"With voting power now less concentrated, we believe an acquisition is now much more likely," the firm said in an analyst note. 

Cantor Fitzgerald noted that Priceline (PCLN) and TripAdvisor (TRIP) could also be possible buyers. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

TheStreetRatings team rates Yelp as a Sell with a ratings score of D. This is driven by a number of negative factors, which it believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers. Among the areas the team feels are negative, one of the most important has been an overall disappointing return on equity.

You can view the full analysis from the report here:


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