J.P. Morgan downgrades Yelp and Ziff Davis on headwinds to online advertising

Ziff Davis

20/12/2022 12:54

** Shares of business review website Yelp Inc  YELP.N  down
3.4% at 25.7 premarket
    ** J.P. Morgan downgrades YELP to "underweight" from
"neutral" and digital media co Ziff Davis Inc  ZD.O  to
"neutral" from "overweight" 
    ** Says across small and mid-cap internet cos; brokerage is
most cautious on online advertising 
    ** Also cuts PT for YELP to $23 from $34 and for ZD to $85
from $115
    ** Brokerage says online advertising has been under pressure
more in Q4 and is unlikely to improve until first half of FY23
    ** "Ad spend is challenged across the board, but weakness
seems most pronounced across brand spend and the TV scatter
market" - JPM
    ** Shares of ZD down 1.1% at 47.9 premarket, in light
trading 
    ** Up to Monday's close, YELP and ZD had fallen 26.3% and
28.8%, YTD, respectively
 (Reporting by Shristi  Achar A in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com;))