Yelp shares have been a big winner this year, gaining more than 80% year-to-date. One research firm thinks there’s more upside from here.
Pacific Crest analyst Evan Wilson initiated coverage on the San Francisco-based Yelp, starting shares at “outperform” with a $40 price target. Wilson believes that Yelp, which provides users with reviews of local businesses, is poised to benefit from the coming boon in mobile advertising, with its 39 million user-based reviews. “The depth of its reviews is a very valuable commodity and difficult to replicate,” Wilson wrote in the report. “Yelp’s biggest innovation was combining a user review site with community features and a modern desktop and mobile interface.”