"We believe a large opportunity remains open for YELP and are encouraged by three quarters of solid execution," the firm wrote.
Continued high growth and a relatively low valuation should draw mid-cap growth managers back to the stock following two years of "disappointment," MKM Partners noted.
The firm said it is further encouraged by improvements in site utility, as users can now directly interact with 100,000 businesses through the Yelp app to book restaurants and appoints.
MKM Partners reiterated a "buy" rating on shares of the San Francisco-based reviews service.
Yelp stock closed down in Wednesday's trading session.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Yelp's weaknesses include an overall disappointing return on equity.
You can view the full analysis from the report here: YELP
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 article's author.