Market Overview

Northland Bullish On GrubHub, Initiates Outperform And Sees 'Compelling' Reasons To Boost Market Size

Related GRUB
Grubhub's Q3 Results Likely Driven By Delivery, Technology Improvements
7 Biggest Price Target Changes For Thursday

Late Tuesday Northland Capital initiated on GrubHub Inc (NYSE: GRUB) at Outperform with a $40 PT.  Analyst Jeff Houston notes "several opportunities" exists to increase Total Addressable Market (TAM) and add to their growth momentum. GrubHub stands to gain from its '"compelling" services by increasing demand "that was non-existent through the traditional alternative."

Recent investor worries over the impact to profitability due to investment in delivery services may blow over as "initiatives to reaccelerate profitability" improves over time.

Related Link: Buy The Dip In GrubHub, Sterne Agee CRT Says

Northland says the only competitive threat was Seamless and that was acquired by GrubHub in Q3 2013 so there appears to be smooth sailing ahead provided GrubHub can execute its plan.  LiveSocial attempted to enter GrubHub's market but failed and Northland views this as evidence of GrubHub's deep competitive moat.

Northland also sees GrubHub as being a potential acquisition target first by Uber then perhaps Google Inc (NASDAQ: GOOG), TripAdvisor Inc (NASDAQ: TRIP) or Priceline Group Inc (NASDAQ: PCLN).

Latest Ratings for GRUB

Oct 2016Bank of AmericaUpgradesNeutralBuy
Oct 2016Argus CapitalInitiates Coverage OnBuy
Oct 2016Roth CapitalInitiates Coverage OnNeutral

View More Analyst Ratings for GRUB
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Initiation Analyst Ratings Trading Ideas


Related Articles (GOOG + GRUB)

View Comments and Join the Discussion!