NEW YORK (TheStreet) -- Shares of Yelp (YELP) - Get Report are advancing 0.96% to $29.48 in early morning trading on Thursday as MKM Partners upgraded the company to "buy" from "neutral" with a 12-month price target of $40.
The San-Francisco-based website and app that hosts crowd-sourced reviews on local businesses should gain tailwind from its recently increased salesforce productivity, MKM wrote in an analyst note.
"The mid-caps in the sector have all underperformed," MKM noted. "We think YELP is among the cleanest stories of the group for potential recovery."
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:
We rate YELP INC as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.