Yelp Inc. (NYSE: YELP) received a late-week upgrade from RBC Capital Markets that almost negated any of the negative vibes you might have had watching this online reviews site lose three-quarters of its value from peak to trough.
RBC raised Yelp’s shares to Outperform from Sector Perform, and the price target was raised to $42.00 from $34.00 in its call. The prior close was $25.90 and Friday’s close was $27.10 that still implies more than 50% upside if the firm happens to be right here. What investors need to consider here in Yelp is that it still has nosebleed valuations.
Many analysts and investors view the company as a great source of information, but one that may struggle to be profitable. We would point out that the trend has been for analyst downgrades and lowered price targets to the point that the consensus analyst price target is closer to $31.00.
CPI Card Group
CPI Card Group Inc. (NASDAQ: PMTS) was started as Buy with a $16 price target (versus an $11.90 close) at Goldman Sachs on Monday. The problem is that the market took the shares down for a 7% drop on Friday to $10.91, implying upside of 47%.
Also, that $16.00 target is not even close to the highest analyst target price for this recent IPO that priced at $10.00 per share in mid-October.
Momenta Pharmaceuticals Inc. (NASDAQ: MNTA) was started as Overweight at JPMorgan on Friday, and the firm assigned a $26 price target. This implied 46% upside from the prior $17.76 close, although Momenta shares rose almost 2% to $18.11 after the call.
Momenta’s consensus price target is almost $22.00, and its 52-week range is $10.22 to $25.56.
TerraForm Power Inc. (NASDAQ: TERP) is another one that may feel a bit awkward when it is all said and done due to poor performance. TerraForm is a yieldco and was maintained as Buy with a $34.00 fair value estimate at Janney Capital Markets after earnings.
Here is the potential problem in this call’s upside: TerraForm closed at $18.30 before the call was made but ended the week at $13.80. Janney liked the earnings report when the rest of Wall Street ran for cover.
Why does over 100% implied upside now seem like yet another target that needs to come down?
TETRA Technologies Inc. (NYSE: TTI) was raised to Overweight from Neutral at JPMorgan on Tuesday. It was assigned a $12.00 price target, implying just over 50% upside from the prior $7.84 close. The problem here is that TETRA Tech closed up at $8.71 on Friday and is now just under its 52-week high of $8.86.
The oil and gas services company is expected to post a profit this year and next, but TETRA has a spotty earnings history, and its $700 million market cap is smaller than many analysts will cover. This $12.00 target is the highest of all analysts and the consensus analyst price target is closer to $10.18.