- Coming off a 52-week high Friday, Yelp (NYSE:YELP) is 2.4% lower as Cantor Fitzgerald downgrades to Neutral, seeing all the positives now baked in.
- Shares are up 32.7% in 2017, but they're up 41% just over the past couple of months. At $45.61 currently, the firm believes it's fairly valued compared to a discounted cash flow-derived target of $44.
- Ad revenue growth is healthy, and Cantor expects contributions from the national and self-serve channels to continue growing.
- But: "While retention/churn has improved with client partner team retention efforts, it's important to note that quarterly SMB local ad revenue could remain choppy in any given quarter as a result of these factors," the firm says.
- It adds the partnership with GrubHub (NYSE:GRUB) could boost transaction revenues, with a 25% gain expected; food orders on Yelp were up 50% Y/Y in Q2.