UPDATE: Citi Starts Yelp (YELP) at Neutral

(Updated - July 10, 2013 7:18 AM EDT)

Citi initiates coverage on Yelp (NYSE: YELP) with a Neutral rating and $35 price target.

Analyst Mark May comments, "Generally bullish on the value of reviews/recommendations in the e-commerce value chain, and on Yelp's ability to sustain >20% growth, but current valuation prices in either more upside to earnings than we believe is likely or reasonable to assume today (e.g., from new international markets contribution and/or new ancillary streams) or a take-out premium that we don't consider in our analysis. Our $35 target implies a high multiple but growth is >50% and we find no known downside catalyst."

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 $34.91 yesterday.

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