Shares of Yelp  (YELP - Get Report) were higher over 2.50% during late Tuesday morning trading after the stock was upgraded at Pacific Crest to "overweight" from "sector weight."

The firm called the online business reviewer an "underappreciated core franchise."

Competitive uncertainties regarding Yelp's relevance are overblown, "while self-serve's ease and utility are underappreciated," Pacific Crest analyst Brad Erickson wrote.

Self-serve is Yelp's platform that allows businesses to manage their own advertising.

Erickson noted that his "channel checks" imply that Yelp is protected from Alphabet's (GOOGL - Get Report) Google and delivers value to its customers.

The company is well positioned to attract a part of the more than $60 billion in local ad spending that is shifting online, he added.

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