Analyst Initiates Bearish Coverage on Yelp Stock

Core Viewpoint - Yelp Inc's shares are experiencing a decline following Bank of America's initiation of bearish coverage with an "underperform" rating and a $30 price target, attributed to declining usage impacting growth outlook [1] Group 1: Analyst Ratings and Price Targets - Eight out of ten brokerages covering Yelp rated the stock as a "hold" or worse, indicating a generally negative sentiment among analysts [1] - The 12-month consensus target price for Yelp is $41, representing a 19.1% premium over Friday's closing price, suggesting potential for further price-target cuts [1] Group 2: Options Market Insights - The options market shows a 10-day call/put volume ratio of 1.64, indicating a higher level of call activity compared to puts, ranking above 77% of readings from the past year [1] - Yelp's Schaeffer's Volatility Index (SVI) is at 27%, placing it in the low 6th percentile of the last 12 months, suggesting low volatility expectations [2] - The Schaeffer's Volatility Scorecard (SVS) is currently very low at 6 out of 100, making Yelp a prime candidate for selling options [2] Group 3: Stock Performance and Technical Analysis - Yelp stock is expected to open just above $33.50, a level that has acted as both resistance and support since a drop below $35.50 in late July [2] - The stock is set to fall below its 10-day moving average after briefly reclaiming support from the trendline, contributing to a year-to-date deficit of 27.3% [2]