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Analysts’ Top Technology Picks: Yelp Inc (YELP), Liveperson (LPSN)


There’s a lot to be optimistic about in the Technology sector as 3 analysts just weighed in on Yelp Inc (YELP), Liveperson (LPSN) and Wideopenwest Inc (WOW) with bullish sentiments.

Yelp Inc (YELP)

B.Riley FBR analyst Sameet Sinha reiterated a Buy rating on Yelp Inc today and set a price target of $45. The company’s shares opened today at $29.59, close to its 52-week low of $29.33.

Sinha said:

“Yelp Inc. (YELP) reported 3Q miss and reduced annual guidance; shares traded down 28% AH. 3Q revenue/AEBITDA came in at $241.1M/$51.7M versus our estimate of $243.9M/$49.8M and consensus $245.6M/$51.2M, and the FY18 revenue/AEBITDA guide was reduced by 2%/5%. The issue with guidance relates to Additions (PAA) which was zero in 3Q during the quarter, well below our/consensus estimates of 10k/7k. Management indicated that certain operational issues in the second half of 3Q significantly impacted the PAA growth machine. Expectation is for DD% revenue growth and 200-300 bps margin expansion in 2019 as it diversifies its customer acquisition and invests more in scalable technology.”

According to TipRanks.com, Sinha is a 4-star analyst with an average return of 4.4% and a 49.2% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Brightcove Inc.

The word on The Street in general, suggests a Hold analyst consensus rating for Yelp Inc with a $36.38 average price target, implying a 22.9% upside from current levels. In a report released yesterday, Deutsche Bank also reiterated a Buy rating on the stock with a $64 price target.

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See today’s analyst top recommended stocks >>

Liveperson (LPSN)

B.Riley FBR analyst Zach Cummins reiterated a Buy rating on Liveperson today and set a price target of $32. The company’s shares opened today at $22.03.

Cummins noted:

“LivePerson (LPSN) reported strong 3Q results. Revenues and adjusted EBITDA exceeded expectations, while pro forma EPS were in line. Stronger-than-anticipated bookings activity drove the upside in 3Q, which resulted in the third consecutive quarter of mid-teens top- line growth. Average deal sizes increased yet again as customers increasingly embrace mobile messaging, and transactions with new customers and contract value grew 40% Y/Y . Reflecting the upside revenues, gross margin was slightly above our projection while operating expenses were approximately in line with our model. Adjusted EBITDA was slightly above our estimate and consensus while pro forma EPS were in line.”

According to TipRanks.com, Cummins is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -11.8% and a 23.1% success rate. Cummins covers the Technology sector, focusing on stocks such as ServiceSource International Inc, American Software, and ChannelAdvisor.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Liveperson with a $29 average price target, representing a 31.6% upside. In a report released today, Ladenburg also reiterated a Buy rating on the stock with a $27 price target.

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Wideopenwest Inc (WOW)

B.Riley FBR analyst Zachary Silver reiterated a Buy rating on Wideopenwest Inc today and set a price target of $16. The company’s shares opened today at $11.56.

Silver noted:

“WideOpenWest’s (WOW – 3Q18 results featured a burst of high-speed data subscriber growth, well ahead of our and consensus’ expectations, and another solid AEBITDA beat. Since our June 21 initiation, we have contended that, because WOW already has in place an industry-leading broadband network, its $25M investment this year in improvements to sales, marketing, customer service, and digital capabilities should produce outsized benefits for sub-growth trends. So far this year, churn has fallen to its lowest level in two years, and WOW managed to add more customers this quarter than it did in all of 2017. Moreover, these investments are driving significant long-term cost savings.”

According to TipRanks.com, Silver is a 3-star analyst with an average return of 12.0% and a 85.7% success rate. Silver covers the Technology sector, focusing on stocks such as Shenandoah Telecommunications Co, Telephone & Data Systems Inc, and United States Cellular.

Wideopenwest Inc has an analyst consensus of Strong Buy, with a price target consensus of $14.

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