SunTrust Sees 3 New Positives on Yelp

In a report published Tuesday, SunTrust analyst Robert Peck sees three new positives for

. The analyst reiterates a Buy rating and $85.00 price target. Peck reported that chain initiative, SeatMe push, and no Panda impact “bode well for fundamental story”. The analyst commented that the company is in the early stage of targeting chains following a meeting with management. SunTrust wrote, “management did note the company is making a concerted effort to sell local advertising to organizations with regional or national "store" footprints. These types of advertisers are on the platform but represent a small percentage at current according to management. The company has a small dedicated sales team targeting the chains and management acknowledged this to be a nascent but large opportunity.” With the SeatMe push in progress, Peck noted panelists see Yelp to be more proactive in selling SeatMe including into OpenTable accounts. The analyst added that continued communication with panelists will aid in feedback on the comparison. SunTrust wrote that that SeatMe has U.S. opportunity of approximately 50,000 at $99 per month and assuming 30 percent market penetration. This equated to over 14,000 customers and $17 million in annual U.S. revenue. Shares of Yelp closed at $61.54 on Friday and are currently trading up 2.94 percent at $63.35.