Yelp price target lowered to $25 from $30 at BofA

BofA lowered the firm’s price target on Yelp (YELP) to $25 from $30 and keeps an Underperform rating on the shares after “mixed” Q4 results and a “soft” FY26 outlook. While the firm thinks the market is “embedding an excessive discount for AI disruption risk” at current levels, the firm remains cautious on Yelp given a declining user base and weakening engagement, core ad growth trailing peers, elevated execution risk with expansion into a completely new revenue category, and what will likely be a slowing pace of share repurchases, the analyst tells investors.