BUZZ-Yelp shares fall as BofA initiates coverage with bearish rating

Reuters09-16

** Shares of online reviews platform Yelp Inc were down nearly 3% at $33.43 in early trading Mon after BofA initiated coverage with an "underperform" rating and a price target of $30

** "We believe Yelp's declining usage coupled with increasing competitive pressure on the Restaurant, Retail & Other segment (~1/3 of total revenues) will continue to weigh on platform's growth outlook," BofA Securities analysts wrote in a note Mon

** They added that they see "downside risk" to Wall Street's estimates on the stock for 2025-26 and "expect downward revisions to pressure multiple."

** The median 12-mo price target on YELP is $39, and eight of 12 analysts covering the stock rate it a "hold," according to LSEG

** Including the session move, YELP is down about 29% YTD. The S&P 500 is up about 18% YTD

(Reporting by Caroline Valetkevitch)

((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging: caroline.valetkevitch.thomsonreuters.com@reuters.net))

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