Yelp early strength attributed to talk of buyout The early move higher in shares of Yelp is being attributed to speculation that Google (GOOG) may have interest in acquiring the online review site. The Wall Street Journal on May 7 reported that Yelp has hired banks to explore a sale. Shares of the company are up $1.05 to $47.61 in early trading.
Yelp downgraded to Neutral from Overweight at Piper Jaffray Piper Jaffray analyst Gene Munster downgraded Yelp to Neutral from Overweight saying a takeout is priced into shares at current levels. Munster sees a 65% chance of Yelp eventually getting acquired at a valuation at or slightly below the current share price. The stock has rallied 24% since it was reported that the company hired a bank to explore a sale, the analyst points out. He lowered his price target for shares to $46 from $70. The review website closed Friday down 46c to $46.89.