Oppenheimer Comments on Google, OpenTable Relationship
In the report, Oppenheimer writes, "Following a conversation with OPEN management, we believe the company has strengthened its relationship with GOOG. Yesterday, we saw a 7% intraday low in OPEN shares following GOOG's decision to remove the Zagat pay-wall and provide free restaurant reviews to Google+ members. Initially, investors viewed this as a negative for OPEN, as there have been concerns that GOOG might look to compete with OPEN. However, OPEN is now offered as the primary reservation function app on Google+, suggesting GOOG is not looking to compete, but to partner. We expect the shares to rally as investors better digest this news."
Oppenheimer maintains its Outperform rating on Google, which closed yesterday at $588.23 while maintaining its Perform rating on OpenTable, which closed at $39.64.
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