Market Overview

GrubHub's Q2 Shows Continued Growth In Underpenetrated Sector, Says Incrementally Bullish KeyBanc

GrubHub's Q2 Shows Continued Growth In Underpenetrated Sector, Says Incrementally Bullish KeyBanc

GrubHub Inc. (NYSE: GRUB) reported strong second-quarter performance Wednesday while also announcing plans to acquire LevelUp, the restaurant loyalty platform.

The Analyst

KeyBanc Capital Markets analyst Brad Erickson reiterated an Overweight on GrubHub with a price target increased from $115 to $175.

The Thesis

Erickson considers GrubHub’s increased growth and profitability as key catalysts in an industry that is rather underpenetrated. (See the analyst's track record here.) 

The LevelUp acquisition demonstrates the company’s desire to explore more opportunity in food ordering methods and advance in technology and industry expertise, the analyst said. 

KeyBanc raised its revenue estimate for GrubHub, citing higher gross food sales and take rates in the quarter. 

"We continue to expect some deceleration through the end of this year, but the combination of Yum! ramping, potential beginning tailwinds from LevelUp and future unknown acquisitions give us confidence that our estimates are achievable, if not still conservative,” Erickson said.

The analyst said he expects an exponential increase in both sales and marketing spending as GrubHub expands and further develops.

GrubHub should feel little impact from current competitors, Erickson said. 

Price Action

GrubHub shares were up 0.58 percent at $135.51 at the close Thursday.

Related Links:

GrubHub Leads The Online Restaurant And Delivery Sector, Says KeyBanc Analyst

After Recommending GrubHub For Over A Year, Morgan Stanley Takes Neutral Stance

Photo courtesy of GrubHub. 

Latest Ratings for GRUB

Oct 2019MaintainsEqual-Weight
Sep 2019MaintainsOutperform
Jul 2019MaintainsOutperform

View More Analyst Ratings for GRUB
View the Latest Analyst Ratings

Posted-In: Brad EricksonAnalyst Color News Price Target Reiteration Restaurants Analyst Ratings General Best of Benzinga


Related Articles (GRUB)

View Comments and Join the Discussion!

Latest Ratings

ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Amazon Trades Up After Q2 Earnings Beat, Bezos Highlights Alexa Growth

Facebook Lost $120 Billion In Market Cap: Here's Some Perspective