Goldman Sachs Initiated Coverage On GrubHub

Analysts at Goldman Sachs initiated coverage of GrubHub Inc GRUB on Friday with an Outperform rating. GrubHub is an online and mobile food ordering platform.

Growing Business

In October, GrubHub announced Q3 2014 earnings of $0.08 per share, beating consensus estimates by $0.02. Revenue of $61.9 million for the quarter also beat consensus estimates of $57.4 million and represented 51 percent year-over-year growth.

Other Analyst Action

Oppenheimer also initiated coverage last week by issuing an Outperform rating and setting a $42.00 price target. In late October, Zacks upgraded GrubHub from Neutral to Outperform and set a target of $38.10. Citigroup reiterated a Buy rating in October and raised their price target from $41.00 to $44.00.

Major Upside

GrubHub stock was up about 2 percent on news of Goldman’s Buy rating. Oppenheimer’s $42 price target represents a 16.7 percent upside for the stock from current levels. Citgroups $44 target suggests 22.2 percent upside. GrubHub shareholders have had a decent year in 2014. The stock is up 5.2 percent year-to-date.

Insider Selling

Three GrubHub insiders have sold shares of the company’s stock this month. GrubHub President Jonathan Zabusky sold nearly $830,000 worth of GrubHub stock at around $33 per share earlier in December.