Northland Bullish On GrubHub, Initiates Outperform And Sees 'Compelling' Reasons To Boost Market Size
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.
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.
Latest Ratings for GRUB
|Oct 2016||Bank of America||Upgrades||Neutral||Buy|
|Oct 2016||Argus Capital||Initiates Coverage On||Buy|
|Oct 2016||Roth Capital||Initiates Coverage On||Neutral|
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