Yelp Shares Jump 2.6% Premarket As Pacific Crest Upgrades To Overweight

Shares of online business reviewer Yelp Inc. climbed 2.6% in premarket trade Tuesday, after Pacific Crest upgraded the stock to the equivalent of buy and said it has an "underappreciated core franchise." Analysts led by Brad Erickson said competitive concerns about Yelp's relevance are overdone, "while self-serve's ease and utility are underappreciated." Self-serve is a tool that allows businesses drive their own advertising. The analysts said his channel checks suggest that Yelp is insulated from Google and delivering value to its customers. The company is well positioned to attract a part of the more than $60 billion in local ad spending that is shifting online, he said. Erickson raised his 2017 and 2018 revenue estimates. Shares are down 14% in 2017, while the S&P 500 has gained 5%.