UPDATE: J.P. Morgan Downgrades OpenTable to Neutral on Weak Domestic Trends, Upside Potential
In a report published Monday, J.P. Morgan analyst Kaizad Gotla downgraded the rating on OpenTable (NASDAQ: OPEN) from Overweight to Neutral, but raised the price target from $53.00 to $62.00.
In the report, Gotla noted, “We are downgrading OpenTable from Overweight to Neutral as we believe shares now reflect potential upside from better conversions and improving trends in the UK. We're optimistic on conversions/UK improvements and believe our above Street 2013/14 estimates already reflect this positive scenario. However, we think shares appear fully valued at these levels and soft near-term industry trends could offer a better entry point. We believe OpenTable remains among the best Internet business models and we expect secular share gains to continue over time, but think the near-term risk/reward at current levels is more balanced.”
OpenTable closed on Friday at $60.50.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.