Yelp Inc. was downgraded to hold from buy at Deutsche Bank on Tuesday, with analyst Lloyd Walmsley citing press reports from earlier this month that the reviews site has backed away from a potential sale. A series of recent events make him “less comfortable” with his already below-consensus estimates, and “less confident in Yelp’s strategic value,” according to Walmsley. The bank also cut its 12-month price target on Yelp to $31 from $56 and trimmed its 2015 and 2016 revenue estimates. Shares of Yelp fell 3.4% to $32.50 in recent trade. They had tumbled 10% on July 2 after Bloomberg reported that Yelp’s management had decided to postpone sales talks. “As operating metrics deteriorated of late, we felt some comfort that strategic value provided protection and upside potential,” said Walmsley. “With press reports noting Yelp has backed away from considering a sale, asset value provides less of a safety net for deteriorating fundamentals.”
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