UPDATE: Credit Suisse Initiates Coverage on Yelp with Outperform Rating, $25 PT

In a report published Wednesday, Credit Suisse Group initiated coverage on Yelp YELP with an Outperform rating and $25.00 price target. Credit Suisse noted, “Our analysis suggests that the conversion rate of claimed local businesses to active local accounts is greater by a factor of 2x for the older domestic cohorts. Yelp has also disclosed that its International markets are essentially unmonetized. Hence, it is currently generating its Local Advertising revenue from just 36,000 businesses, out of over 27 million in the US alone. Our long-term estimates and price target are based on Yelp reaching 220,000 subscribers in five years; we do not think this is a large ask given the size of the market.” Yelp closed on Tuesday at $19.30.