Yelp a top tech pick for 2017 on 'request-a-quote' and other new site features, analyst says

Yelp CEO Jeremy Stoppelman
Jin Lee | Bloomberg | Getty Images

Investors should buy Yelp shares as its new ad business model and "request-a-quote" feature drive higher revenue next year, according to MKM Partners, which reiterated its buy rating on the internet company.

Yelp is "still our top SMID cap growth pick into 2017," analyst Rob Sanderson wrote in a note to clients Thursday. "We believe YELP is serving a very large and under-penetrated opportunity. Despite some missteps and an extreme overreaction by the market, execution has improved, the sales channel is becoming more diverse and efficient and we believe there is still a significant runway for growth."

The shares are up about 35 percent this year.