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Pretty absurd downgrade of Yelp. The stock is basically being given away below $30 and JPMorgan doesn't want it. The stock has actually hit a new 52-week low on the news.
-Yelp downgraded to Underweight from Neutral at JPMorgan
-JPMorgan analyst Cory Carpenter downgraded Yelp to Underweight from Neutral with a price target of $23, down from $34. The insurance lead generation sector is the analyst's favorite across small and mid-cap internet stocks for 2023. He downgraded Ziff Davis to Neutral and Yelp to Underweight citing a cautious view of online advertising. Trends in online advertising are unlikely to improve at least through the first half of 2023, Carpenter tells investors in a research note.
Original article published on Nov. 4
- Yelp reported a strong Q3'22 with revenues growing 15% YoY.
- The consumer review site cut Q4 targets due to the tough economic environment, but revenue growth is still targeted at nearly 12%.
- The stock is absurdly cheap below 7x EV/EBITDA targets.