Yelp Inc. Stock Surpasses Analyst Target Price; Analyst Reactions Emerge

Recently, shares of Yelp Inc. (Symbol: YELP) surpassed the average analyst 12-month target price of $38.75, trading at $38.98 per share. When a stock meets its target price, analysts typically face two options: they can either downgrade their valuation or adjust their target price higher. The choice often hinges on recent company developments that might be influencing the stock’s performance—if prospects appear stronger, an increase in the target price may be warranted.

Across the Zacks coverage universe, eight analysts contribute to the average target for Yelp Inc. However, it is important to note that averages can mask a range of opinions. For instance, while one analyst projects a price as low as $30.00, another sets their target as high as $48.00. The standard deviation stands at $6.43, indicating some significant disparity in outlooks.

The value of examining the average price target lies in a collective insight from multiple analysts, offering a broader perspective than a single viewpoint. With Yelp trading above the average target price of $38.75 per share, investors now face a critical decision: is this just a stepping stone toward a higher target, or is it time to reconsider their holdings before a potential decline? Below is an overview of current analyst ratings for Yelp Inc.:

The average rating in the table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 represents a Strong Sell. Data used in this article is sourced from Zacks Investment Research via Quandl.com.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.