Like TripAdvisor, Yelp has a major headstart in restaurant and other local business reviews, and that should be a big plus in its competition with the likes of Facebook, TripAdvisor and European restaurant review sites. Will mobile advertising resonate with Yelp's users? The jury is out on that.
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.”
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