Yelp To Take Larger Bite Of Local Markets With Eat24 Acquisition

In a report published Wednesday, Wunderlich Securities analyst Blake T. Harper reiterated a Buy rating and $90.00 price target on Yelp (NYSE: YELP).

In the report, Wunderlich Securities noted, "Yelp Inc. (YELP) has purchased Eat24, an online food ordering service that was already integrated into the Yelp Platform and enabled users to order takeout from restaurants directly from the Yelp platform. Yelp was also already integrated with Delivery.com on its platform. Eat24 was the largest and most successful Yelp Platform partner and has a larger West Coast presence compared to Delivery.com, which has a larger East Coast and NYC presence."

The report continued, "We view the deal positively and it should help the company's strategy of closing the loop between local businesses and consumers. The online food takeout market is a huge $70B+ market in the U.S. just for independent businesses. We are increasing our estimates in line with the updated guidance range to account for the Eat24 business."

Yelp closed on Tuesday at $44.66.