NEW YORK (TheStreet) -- Yelp Inc.'s (YELP) price target was raised to $105 from $90 by Wunderlich Securities who also reiterated their buy rating for the online business review company.
Yelp recently signed a deal with YP -- formerly Yellow Pages -- that will increase Yelp's reach into the small business community. Under the deal, YP will add listings to Yelp's database and Yelp would gain access to YP's 575,000 local business advertisers.
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"We are raising our estimates and price target on Yelp, to $105 from $90, to account for its strategic deal with YP and its recent integration into Yahoo Inc.'s (YHOO) local search results. We expect Yelp to increase its sales productivity and reach by being able to utilize YP's 4,000 strong sales force (4x the size of Yelp's), its 575,000 local business advertisers and its mobile ad network," their note said.
Yelp was down 3.08% to $74.92 in early market trading Thursday.
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."