Why Yelp's Eat24 Acquisition Was The 'Logical Next Step'

Analysts at Credit Suisse are undeterred by Yelp Inc YELP's earnings.

The firm is reiterating its Overweight rating and a price target of $71 –- a 57 percent premium over the current price.  

Specifically, the analysts are encouraged by Yelp’s Eat24 acquisition, noting that it is the logical extension of the previous acquisition of SeatMe. Eat24 extends Yelp's ability to monetize and moves it closer to the "end transaction," while simultaneously strengthening Yelp within the restaurant vertical, they note.

Yelp paid $75 million in cash and 1.4 million shares for Eat24. 

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The analysts now expect Yelp to have $119.4 million in revenue in Q1, up from $116.1 million estimates prior.

Credit Suisse left its adjusted EBITDA estimates unchanged at $20.4 million.

Full-year EBITDA, however, increased to $103.2 million from $102 million on revenue of $573.2 million.