NEW YORK (TheStreet) -- Shares of Yelp (YELP) rose 5.78% to $63.47 in morning trading Monday after Barclays increased its EPS and revenue estimates on the online customer review company for 2015 and 2016.
Barclays cited Yelp's presence in numerous foreign markets as one of the reasons for the increase.
"Yelp has a presence in 66 foreign markets and there is a TAM of close to $100B in global local ad spend. But international revenues have remained sluggish so far at a ~$3M quarterly run rate, due in part to entrenched competition and cultural barriers but more so because it's still early days," the firm wrote in a research note.
"In this note, we analyze domestic cohort trends to predict the pace of international revenue growth, and based on our findings, we are raising our 2015 and 2016 revenue estimates."
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Barclays said it expects Yelp's international operations to contribute $27 million in revenue in 2015, $60 million in 2016, and $546 million, or approximately 30% of total revenue, in 2020.
Barclays now anticipates EPS of 68 cents in 2015 and $1.09 in 2016.
The firm also believes the recent dislocation in shares provides an attractive entry point. As a result, it reiterated its "overweight" rating and $85 price target.
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: