Yelp Soars to Three-Year High as Wall Street Warms Up to Brand

(Bloomberg) -- Yelp Inc. keeps surging following positive recommendations from both analysts and investors this week.

Shares of the online review website rose as much as 7.7 percent Thursday, hitting the highest level in more than three years. The stock is up 14 percent for the week.

Yelp Soars to Three-Year High as Wall Street Warms Up to Brand

The rally comes after two positive reports Tuesday, including one from JPMorgan analyst Doug Anmuth, who sees upside to Yelp’s revenue and earnings forecast for the year. He designates the stock as a “top pick” in the internet space.

Another bullish recommendation on Tuesday came from Jeremy Kahan, a managing partner at North Peak Capital, on the investment network SumZero. In the post, which was obtained by Bloomberg, Kahan disclosed a long position and said he sees shares more than tripling on Yelp’s growth potential and its business model.

“If the business meets our lofty projections, we believe the stock will trade at a 5% free cash yield and be worth ~$120 per share plus the ~$30 of cash that would have built on the balance, relative to a $45 share price today,” Kahan wrote.

Of the 29 analysts that cover Yelp, almost half of them rate the stock the equivalent of buy, according to data compiled by Bloomberg.

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