There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on GrubHub (NYSE: GRUB) and First Data Corp (NYSE: FDC) with bullish sentiments.
GrubHub (NYSE: GRUB)
Oppenheimer analyst Jason Helfstein maintained a Buy rating on GrubHub (NYSE: GRUB) yesterday and set a price target of $130. The company’s shares closed yesterday at $115.98, close to its 52-week high of $116.90.
Helfstein observed:
“We are increasing our price target to $130 from $100 and maintaining our Outperform rating. We believe: 1) the opportunity for GRUB to add incremental value to its partners via a white-labeled mobile application is materially undervalued by our prior valuation framework and the Street, 2) GRUB’s customer acquisition cost is barely increasing above media inflation, despite significantly ramping marketing spending, and 3) GRUB is underpenetrated with its existing chain restaurant partners (on the basis of Grubhub Units/Total Partner Units). With regard to the first point, we believe the GFS opportunity in off-platform white-labeled mobile experiences could be as large as $169B, with Grubhub participating at attractive commissions rates (~8.5%).”
According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 20.6% and a 70.2% success rate. Helfstein covers the Technology sector, focusing on stocks such as Endurance International, ANGI Homeservices Inc, and IAC/InterActiveCorp.
Currently, the analyst consensus on GrubHub is Moderate Buy and the average price target is $108.40, representing a -6.5% downside.
In a report issued on May 31, Canaccord Genuity also assigned a Buy rating to the stock with a $130 price target.
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First Data Corp (NYSE: FDC)
In a report released yesterday, Mark Palmer from BTIG maintained a Buy rating on First Data Corp (NYSE: FDC), with a price target of $23. The company’s shares closed yesterday at $21.50, close to its 52-week high of $22.14.
Palmer said:
“Data (FDC) have rallied over 35% since late April to an all- time high. As such, many of those attending City yesterday were focused on the continued sustainability of the recent outperformance and the potential for additional upside. With that said, CEO Frank Bisignano and his team delivered presentations outlining management’s track record of executing on commitments and provided a roadmap to a consistent mid-single digit revenue CAGR supported by over $3bn of high growth businesses and approximately $1.5bn spent on product innovation every year.”
According to TipRanks.com, Palmer is a 5-star analyst with an average return of 11.3% and a 65.2% success rate. Palmer covers the Financial sector, focusing on stocks such as Santander Consumer USA, Assured Guaranty Ltd, and Synchrony Financial.
Currently, the analyst consensus on First Data Corp is Strong Buy and the average price target is $22.50, representing a 4.7% upside.
In a report issued on June 11, Goldman Sachs also upgraded the stock to Buy with a $25 price target.
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