Yelp shares downgraded following strong run
NEW YORK (AP) — A UBS analyst downgraded shares of Yelp Inc. on Monday after the business review site's shares have climbed more than 50 percent since the beginning of May.
THE OPINION: Analyst Eric Sheridan downgraded the stock to "Neutral" from "Buy," and raised his price target to $40 per share from $32. Sheridan has a positive view of the company and raised his 2014 revenue estimate to $340 million from $322 million, but said the company's stock is trading at a fair price.
"We continue to believe that Yelp is one of the best positioned businesses within our coverage universe in terms of key secular themes," he said.
FactSet says analysts expect Yelp to report $313.7 million in revenue in 2014.
THE STOCK: Yelp shares fell 73 cents, or 1.9 percent, to $38.67. Before Monday's action, the stock had climbed 55.7 percent since the company reported its first-quarter results on May 1.