Yelp (YELP), YP Deal a Win-Win, Wunderlich Says

Wunderlich Securities analyst Blake Harper reiterated a Buy rating and $90 price target on Yelp (NYSE: YELP) following news after the close of a deal with YP (formerly Yellow Pages).

The deal strengthens Yelp's advertiser reach, the analyst noted. "Yelp has more consumer traffic, with over 120 million monthly unique visitors in Q4 and a more active user base that has posted over 53 million reviews in total, but YP has over 575,000 local business advertisers, compared to 67,000 local business advertisers for Yelp. YP also has over 4,000 salespeople, ~4x the number Yelp has, and an ad network that has over 300 publisher sites and apps, which will now include Yelp's site and app."

The analyst sees the deal leading to a deeper partnership between the two companies, "who likely see more value in cooperating and sharing assets rather than engaging in a zero-sum market share battle."

While terms of the deal weren't disclosed, the analyst expect it is a revenue sharing agreements. Winners in the deal are consumers, Yelp and YP.

For an analyst ratings summary and ratings history on Yelp click here. For more ratings news on Yelp click here.

Shares of Yelp closed at $84.31 yesterday.

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