MKM analyst Rob Sanderson is out with a favorable report on shares of Yelp Inc (NYSE:YELP), reiterating a Buy rating on YELP, while raising the price target from $40 to $48 and adjusting the forecast to include a slightly higher full year EBITDA.

For Sanderson, between sales channel evolution and productivity gains driving momentum, to the point that even YELP’s oldest markets still continue to grow by over 30% 11 years later, coupled with a “much more transaction rich” user-friendly site, the analyst feels encouraged on the customer review giant’s success. The analyst sees this growth as a reflection of “a large, undeserved market and is disproving a primary Bear concern, in our view.”

Sanderson affirms, “We believe a large opportunity remains open for YELP and are encouraged by three quarters of solid execution. We think that continued high growth and a valuation below peer companies should make mid-cap growth managers come back to the stock after two years of disappointment.”

Even with self-serve accounts remaining a small portion, revenue has doubled in year-over-year, which Sanderson deems yet “another large opportunity,” with confident expectation to carry a significantly higher margin. For Sanderson, YELP remains on track amidst its continued sales momentum.

According to TipRanks, which measures analysts’ and bloggers’ success based on how their calls perform, three-star analyst Rob Sanderson is ranked #1,636 out of 4,123 analysts. Sanderson has a 58% success rate and realizes 1.2% in his annual returns. However, when recommending YELP, Sanderson loses 4.3% in average profits on the stock.

TipRanks analytics demonstrates YELP as a Buy. Based on 23 analysts polled in the last 3 months, 12 rate a Buy on YELP, 8 maintain a Hold, while 3 issue a Sell.

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