Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Grubhub Inc (NYSE:GRUB) shares shot up during Wednesday after Cowen analyst Thomas Champion upgraded the stock to Outperform with a $54 price target. He sees Grubhub’s growth profile and leadership as underappreciated.
“We forecast 22% annual revenue growth and 28% EBITDA growth for GRUB 2017-22. Our forecast is bolstered by a new Delivery Industry model and encouraging data from our Proprietary Consumer Delivery Survey,” the analyst wrote in a note.
Online Delivery Should Help Spur Growth
Champion sees this sector of the business growing from $20 billion to $55 billion.
“With Online approaching 50% of total market dollars, our forecast calls for an improving US Delivery market and accelerating growth through the forecast period. All in, we forecast Delivery to grow from $43BN in 2017 to $76BN in 2022, 12% annually over the next five years,” he said.
As the industry continues to get grow, Champions feel Grubhub is in a strong position to continue to see solid transaction growth numbers. He also noted that even he views his current model as having conservative estimates.
Strong Survey Results
Cowen's consumer usage survey suggested that 34 percent of Online Delivery customers use Grubhub, which is about 70 percent ahead of Grubhub’s next competitor.
“Other providers include UberEats at 20%, followed by Eat24/Yelp Inc. (NYSE:YELP) 17%, Delivery.com 16%, and Amazon.com, Inc. (NASDAQ:AMZN) at 11%. Given Grubhub's usage advantage, we find competitive fears overstated,” Champion wrote.
Grubhub shares were trading up over 5 percent at $45.88. The company reports earnings on July 27.
Related Links
Jim Cramer Loves The Food Delivery Business, GrubHub's Business Model
Oppenheimer Upgrades GrubHub, Sees Biggest Threat Towards Food Ordering As An Opportunity
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!