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Here's What's Feeding The Street's Appetite For GrubHub

Here's What's Feeding The Street's Appetite For GrubHub
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GrubHub Inc (NYSE: GRUB) reported its second-quarter earnings on Thursday. EPS was in-line with the Street’s estimates and sales come in slightly ahead, but gross food were a disappointment to many investors.

The stock jumped on Friday, trading up over 9 percent to over the $53 level.

Following the report, Credit Suisse analyst Paul Bieber reiterating an Outperform rating on the stock and upped his price target from $48 to $50, noting that “the mixed results were overshadowed by the announced partnership between [GrubHub and Yelp Inc (NYSE: YELP)].”

GrubHub bought Eat24, a notable competitor in the food delivery business, from Yelp for $288 million. Yelp will also facilitate food orders on GrubHub through its platform.

Bieber believes Eat24 and other businesses snatched up by GrubHub can generate gross food sales, revenue and EBITDA of $866 million, $130 million and $19-$52 million in 2018.

Bieber noted that his estimates do not yet include these gains, indicating strong further upside potential from his price target.

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Latest Ratings for GRUB

Oct 2017Credit SuisseMaintainsNeutral
Oct 2017BarclaysMaintainsEqual-Weight
Oct 2017Canaccord GenuityMaintainsBuy

View More Analyst Ratings for GRUB
View the Latest Analyst Ratings

Posted-In: Credit Suisse Paul BieberAnalyst Color Earnings News Price Target Analyst Ratings Best of Benzinga


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