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Fly News Breaks for June 18, 2018
Jun 18, 2018 | 09:31 EDT
MKM Partners analyst Rob Sanderson keeps his Buy rating and $56 price target on Yelp. The analyst notes that the stock price is down 14% since reporting a "strong" Q1, and believes that investors' concern with a shift to non-term contracts as misplaced, calling it a "dinosaur in digital marketing world". He anticipates improving growth dynamics for local advertising leading to a catch-up rally in this stock that has not participated in the recent surge for Internet shares. Sanderson further contends that a rising churn rate is not a concern if user participation is on the rise.
News For YELP From the Last 2 Days
Nov 12, 2018 | 14:00 EDT
Active trading in Yelp options as shares attempt to make up losses. The stock adding 3.6% to $32.97 after dropping 26.5% on earnings Friday. In option action, the top trade in Yelp is an opening buyer of 5K Feb 35 calls for $2.45. More than 6K trade against 33 open interest. Buyers also active in Dec 40 calls, where 3K changed hands. Feb 25 puts, Nov 33.5 calls, and Feb 26 puts are next most active. Total volume is more than double the daily average at 20K calls and 8.6K puts. 30-day implied volatility fell 35% Friday and is up 3.5% to 49 today.
Nov 12, 2018 | 10:29 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Yelp (YELP) downgraded to Hold om Buy at SunTrust with analyst Matthew Thornton citing a surprising and disappointing set of Q3 results following a "stellar" first half of 2018, highlighted by the return of sales execution issues, yielding an unexpected slowdown in gross account adds and continued churn. 2. Cheesecake Factory (CAKE) downgraded to Underweight from Equal Weight at Barclays with analyst Jeffrey Bernstein saying he sees headwinds persisting following the company's "disappointing" Q3 results and views the valuation as full at current share levels. 3. Infinity Pharmaceuticals (INFI) downgraded to Underweight from Neutral at JPMorgan and to Market Perform at Wells Fargo. 4. Skyworks (SWKS) downgraded to Neutral from Buy at Citi with analyst Atif Malik saying the company is being impacted by broad smartphone weakness, disappointing unit sales of Apple's (AAPL) iPhone XR, and a high Apple concentration, which represented 39% of sales in fiscal 2019. 5. AB InBev (BUD) downgraded to Hold from Buy at Argus with analyst David Coleman citing the company's dividend cut, which he believes reduces the attraction of the stock to income investors. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.