Yelp Stock Rallying on Possible Sale, Deutsche Bank Weighs In

NEW YORK (TheStreet) -- Shares of Yelp (YELP) are rallying, up 6.42% to $50.03 on heavy volume in midday trading Friday, after Deutsche Bank analysts said they see a 60% chance that the company will sell itself at a price between $59 to $85 per share.

Yesterday, the Wall Street Journal reported that the company hired bankers to explore a sale.

Deutsche Bank thinks there will be a lot of interest in Yelp given its "huge" user base and its difficult-to-copy model.

The firm raised its price target for Yelp shares to $56 from $51 and maintained a "buy" rating.

About 10.82 million shares of Yelp have exchanged hands as of 11:35 a.m. ET today, compared to its average trading volume of about 4.36 million shares a day.

San Francisco-based Yelp is a website for reviews that provides local businesses with a range of free and paid services, helping them engage with consumers.

The company's users having contributed a total of about 36 million reviews of various businesses including restaurants, boutiques and salons to dentists, mechanics and plumbers on its platform.

Separately, TheStreet Ratings team rates YELP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate YELP INC (YELP) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."

You can view the full analysis from the report here: YELP Ratings Report

YELP Chart YELP data by YCharts

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