Yelp (NYSE: YELP) rallied in morning trading on Monday morning after top-rated Goldman Sachs analyst Eric Sheridan upgraded the stock to a Buy from a Hold and raised the price target to $47 from $38 earlier. The analyst’s current price target implies an upside potential of 12.9% at current levels.
Sheridan is bullish about the crowd-sourced business review app “on the back of stable/rising local advertising trends, an analysis of the incremental margin opportunity and the potential for stable/increased shareholder returns in the years ahead.”
The analyst is of the view that the digital advertising environment should be “broadly stable-to-improving” in Q2 against lowered expectations. Yelp has surged by more than 50% year-to-date.
Besides Sheridan, other Wall Street analysts are, however, sidelined about YELP stock with a Hold consensus rating based on one Buy, two Holds, and two Sells.
