Deutsche starts coverage on Yelp with Buy rating and $81 PT

|About: Yelp (YELP)|By:, SA News Editor

The coverage launch led YELP to rise 0.6% AH after jumping 5.3% in regular trading.

The regular-session gains were fueled by positive comments from Morgan Stanley's Scott Devitt. In addition to upgrading Groupon and downgrading OpenTable and Zillow, Devitt raised his Yelp PT to $49 from a mere $26 (still soundly below Yelp's current trading price), while asserting market analysis indicates the local reviews leader is "even better-positioned relative to one year ago, despite intense competition."

After digesting its giant post-earnings gains over the last month, Yelp is back near its post-IPO high of $59.35. Shorts apparently haven't been frightened away by Yelp's mammoth rally: 15.7% of the float was still shorted as of Aug. 15.

Update: SA commenter mikegre points out Yelp also got a lift from an upbeat Citi conference presentation (webcast).