End Of Yelp's Dual-Class Share Structure Could Provide Catalyst For Takeout
Yelp Inc (NYSE: YELP) announced Friday morning that its dual-class share structure would end. Class B shares were converted to Class A, forming a single class of common stock. According to Maxim analyst Tom Forte, this could be a catalyst for Yelp's acquisition.
The analyst reiterated a Buy Rating for the stock and increased his price target from $42 to $45.
Forte mentioned that Alphabet Inc (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL) have all been previously mentioned as possible buyers.
Related Link: Here's Morgan Stanley's Investment Thesis On Yelp
"When we initiated coverage on YELP in June," stated Forte, "we noted that a potential near-term catalyst for the shares was the company being acquired. We went so far as to say that we believed the significant value we saw in Yelp's shares would be unlocked by either investors bidding up shares following improved operating results or via the company being acquired."
Forte also notes that Groupon Inc (NASDAQ: GRPN)'s dual-share class structure will expire at the end of October as well, which could serve as catalyst for that stock as acquisition is placed on the table.
Shares of Yelp traded recently at $39.79, up 1 percent.
Image credit: Nan Palmero, Flickr
Latest Ratings for YELP
Sep 2016 | Macquarie | Maintains | Outperform | |
Aug 2016 | Deutsche Bank | Maintains | Buy | |
Aug 2016 | Citigroup | Maintains | Neutral |
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