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Yelp Soars 27%: Street Dazzled by ‘Eat24′ Sale, GrubHub Partnership; a ‘Win/Win’

Shares of Yelp (YELP) are up $8.35, or almost 27%, at $39.72, extending last night’s gains, after the company beat quarterly expectations, raised its year revenue outlook, set a $200 million share buyback authorization, and said it will sell its "Eat24" unit to GrubHub (GRUB) for almost $300 million.

The stock is getting multiple ratings upgrades today, and several price target increases. The feeling is the Eat24 sale, and the five-year partnership with GrubHub, significantly changes the scale of restaurant ordering opportunity for both Yelp and GrubHub. And analysts were also encouraged by the metrics of the business reported in the quarter.

Rob Sanderson of MKM Partners raises his rating on the stock to Buy from Neutral, and sets a $48 price target...