Yelp (YELP) PT Lowered to $70 at Sterne Agee on Mixed Results

Sterne Agee analyst Arvind Bhatia lowered his price target on Yelp (NYSE: YELP) to $70.00 (from $85.00) following Q4 results but maintained a Buy rating.

Bhatia commented, "4Q was another mixed quarter with weaker-than-expected traffic trends, ALBA growth essentially in line but upside in revenue/adjusted EBITDA. Yelp reported 4Q Revenue / Adjusted EBITDA / EPS of $109.9M /$25.1M / $0.24 versus consensus of $108.4M / $24.5M / $0.07 and guidance of $107M to $108M / $24M to $25M. Management attributed traffic weakness to seasonality and indicated traffic trends in January have picked up. Strength in the performance of the oldest cohorts suggests underlying demand and long-term opportunity remain intact. Lowering 12-month target price to $70, which is based on 7x our FY16 revenue estimate."

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 $57.47 yesterday.

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