Yelp Shares Fly Higher As Goldman Sachs Upgrades Stock To 'Buy,' Foresees Single-Digit Revenue Growth From 2024-2027


Shares of Yelp Inc YELP were flying higher in early trading on Monday, raising the stock's gains to over 50% year to date.

A proprietary study of the advertising industry suggests that the company could generate mid to high single-digit revenue growth from 2024 to 2027, according to Goldman Sachs.

The Yelp Analyst: Eric Sheridan upgraded the rating for Yelp from Neutral to Buy, while raising the price target from $38 to $47.

The Yelp Thesis: A “broadly stable-to-improving local advertising environment” could propel the company’s revenues ahead, Sheridan said in the upgrade note.

Check out other analyst stock ratings.

Yelp’s revenues could also be fueled by “recent investments in its ad tech stack (better measurement/attribution, improved matching algorithm and budget optimization, etc.) driving sustained ad price inflation” as well as “the continued scaling of newer initiatives (e.g. YELP Audiences) driving both better auction density and a more diversified revenue base over time,” the analyst wrote.

“In addition, we see the potential for steady margin expansion over the next 5 years as revenue growth is generated at high incremental margins through a combination of high-margin CPM/CPC inflation and limited opex growth driving operating leverage,” he further stated.

YELP Price Action: Shares of Yelp were spiking 10.54% to $42.15 at the time of publishing Monday.

Now Read: Bank of America, Morgan Stanley, Charles Schwab Report Tuesday: Earnings Season Heats Up

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Posted In: Analyst ColorUpgradesPrice TargetAnalyst RatingsEric SheridanExpert IdeasGoldman Sachs
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