UPDATE: Barrington Initiates Coverage of GrubHub

In a note released Thursday morning, Barrington Research analyst, Jeff Houston initiated coverage of GrubHub, Inc.

with a Market Perform rating but has yet to set a price target. Despite the sentiment that " GrubHub is revolutionizing takeout dining", Houston believes a Market Perform rating is justified due to valuation/multiple compression risk, the expiration of share lockups on October 1st and December 3rd, and "seasonally-weak" results ahead for the third quarter. As possible catalyst, Houston pointed to support from chain restaurants and a possible partnership with Uber or Lift.