The lower price target comes after the San Francisco-based local business review website reported its 2015 fourth quarter earnings results after yesterday's market close.
"Yelp reported fourth quarter results that were roughly in line on revenue but light on EBITDA, as management stepped up its investment in marketing and salesforce hiring," the firm said in an analyst note.
The new price target reflects incremental headcount and marketing spending, Barclays noted. Despite higher marketing spending, the company's total mobile traffic for the quarter declined to 19% year over year.
Additionally, Yelp announced yesterday that its CFO Rob Krolik will resign in the coming months.
The departure could lead to increased execution risks as the company attempts to stabilize traffic and top line growth, the firm added.
Shares of Yelp are declining by 2.93% to $15.59 on Tuesday morning.
Separately, TheStreet Ratings Team has a "hold" rating with a score of C- on the stock.
The primary factors that have impacted its 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 expanding profit margins.