OPEN Business Model Has Strong Network Effect

Analysts at Kaufman Brothers initiate coverage of OpenTable (NASDAQ: OPEN) with a "hold" rating. The target price for OPEN is set to $37.

Kaufman Brothers expresses its optimism regarding OpenTable’s long-term growth prospects. However, OPEN shares appear “fairly valued at current levels,” the analysts say. “To get more constructive at current levels we would like to see stronger uptake internationally and/or a stronger recovery in the restaurant reservation market,” the analysts add. OPEN has a transformative business model, which offers a web-based platform for restaurant reservations. Its business model is likely to benefit from a strong network effect, Kaufman Brothers adds.

More Analyst Ratings here