Wunderlich Securities Sees Good Things Ahead For Yelp

In a report published Thursday, Wunderlich Securities analyst Blake T. Harper reiterated a Buy rating and $105.00 price target on Yelp YELP. In the report, Wunderlich Securities noted, “Yelp, Inc. (YELP) reported solid results that were essentially in line with the consensus and raised FY14 guidance revenues and EBITDA by 3% and 4%, respectively, at the midpoint. The company continued to execute well, adding 7k new local business customers, in line with our 74k total estimate, while also growing its user base to 132 million monthly uniques and mobile ads growing to 49% of the total. "A lack of EBITDA leverage in the first half of the year and stalled international revenue growth in Q1 were drawbacks, but we believe they are more than offset by the advertiser and user counts and revenue growth in Q1, as well as the raised revenue and EBITDA for FY14. We maintain our Buy rating and $105 price target, which is 10x EV/S on a 45% 3-year revenue CAGR.” Yelp closed on Wednesday at $58.32.