NEW YORK (TheStreet) -- JMP Securities upgraded Yelp (YELP) to "market outperform" from "market perform" and set a price target of $113 in a note published Monday.
The note suggests that the online review site's high unique global user numbers, coupled with its low domestic share of the online ad market, means that it has plenty of room to grow. Additionally, the fact that it is at the cutting edge of three online growth trends -- mobile, social and local -- means that analysts at JMP see large upside for the San Francisco-based company.
"Yelp is at the center of three transformational trends across the Internet-Mobile, Social, and Local-and we believe these trends will continue to provide a tailwind for the company" JMP Securities said, "given the large global market opportunity, evolution further down the transaction funnel, and significant consumer scale, we are buyers of the stock and recommend taking advantage of the 15% pullback in shares, based on Friday's close."
Yelp was up 3.21% to $86.11 shortly after market open.
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Separately, TheStreet Ratings team rates YELP INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate YELP INC (YELP) a SELL. This is driven by a number of negative factors, 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 area that we feel has been the company's primary weakness has been its disappointing return on equity."