Market Overview

Victor Anthony: Einhorn's Yelp Forecast A 'Stretch' To Achieve

Share:
Victor Anthony: Einhorn's Yelp Forecast A 'Stretch' To Achieve

Greenlight Capital's David Einhorn released a letter to his fund's investors that detailed several moves in the quarter - including a new position in Yelp Inc (NYSE: YELP).

Einhorn said in his letter Yelp is a "five stars" stock and a position was established at an average price of $21.16. The investment manager expects the company to double its sales and earn $300 million of EBITDA by 2019 if management executes on its plan.

Shares of Yelp were boosted by Einhorn's encouraging comments and were trading higher by more than 3 percent on Tuesday. However, some of Wall Street's analysts did not share a similar bullish sentiment.

Related Link: All You Need To Know From David Einhorn's Q1 Letter To Greenlight Investors

Speaking to Benzinga, Axiom Capital Management's Victor Anthony said Einhorn's longer-term outlook is a "stretch" to achieve.

Anthony pointed out that Yelp's new Chief Financial Officer, Lanny Baker, is "good" but "faces a series of challenges including rising competition, lack of meaningful growth in salesforce productivity, advertiser attrition, slowing fundamentals, and challenges exporting the business outside the U.S."

Anthony also also suggested that Yelp's attractiveness as a takeover company may have diminished. He said Alphabet Inc (NASDAQ: GOOG) and Facebook Inc (NASDAQ: FB) likely have no interest in buying the company "given that both are organically replicating the user review process."

Anthony added that maybe Priceline Group Inc (NASDAQ: PCLN) present another bid to acquire the company.

Image credit: Nan Palmero, Flickr

Latest Ratings for YELP

DateFirmActionFromTo
May 2019DowngradesBuyNeutral
Apr 2019Initiates Coverage OnOutperform
Feb 2019MaintainsBuyBuy

View More Analyst Ratings for YELP
View the Latest Analyst Ratings

Posted-In: David Einhorn David Einhorn Yelp Greenlight Capital yelpAnalyst Color Exclusives Analyst Ratings Tech Best of Benzinga

 

Related Articles (GOOG + FB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
POOLStephens & Co.Reiterates196.0
WMCBank of AmericaReiterates10.5
SNBRBank of AmericaMaintains30.0
BYNDExane BNP ParibasInitiates Coverage On
TSGJefferiesInitiates Coverage On18.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

MiX Telematics Reveals Plan To Buyback Shares Held By Imperial Holdings

Citi On Beverages: Weighted X-Bar Sales Not Looking Great