11:40 AM EDT, 09/16/2024 (MT Newswires) -- Yelp (YELP) faces declining usage and increasing competitive pressure in the restaurant and retail business, BofA Securities said Monday in a report initiating coverage of the company with an underperform rating.

"We estimate Yelp revenue to grow at mid-single digits and believe the company will continue to lose market share to other online media companies," BofA said. Yelp's platform also faces risk from artificial intelligence on consumer search habits, the report said.

An increasing shift in advertising by restaurants to online food delivery platforms may erode Yelp's revenue from digital ads, BofA said.

BofA has a price target of $30 on Yelp.

Shares of Yelp fell 3% in recent trading Monday.

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