NEW YORK (TheStreet) -- Shares of Yelp Inc (YELP) were trading down 1.9% to $46 in pre-market trading Monday, after analysts at Piper Jaffray downgraded the company to "neutral" from "overweight" this morning.
The firm also lowered its price target to $46 from its prior $70 objective.
Piper analysts said a possible takeout is already priced into shares of the review website operator.
They believe shares are fairly valued given its current outlook.
Analysts wrote in a note this morning, "We believe there is a 65% chance Yelp eventually gets acquired, at a valuation at or slightly below the current share price."
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."