After D.A. Davidson and Craig-Hallum gave GrubHub (NYSE: GRUB) a Buy rating last month, the company received another Buy, this time from Stifel Nicolaus. Analyst John Egbert maintained a Buy rating on GrubHub today and set a price target of $105. The company’s shares closed last Monday at $60.40, close to its 52-week low of $55.61.
Egbert said:
“We view both events as incremental improvements to Grubhub’s offering for consumers as they strengthen the company’s restaurant selection and enhance its value proposition to frequent customers. The McDonalds deal could also set the table for a broader partnership across more cities down the road. Key Points Grubhub adds McDelivery: The McDonalds partnership includes a direct point-of-sale integration, with orders being routed from users of both the Seamless and Grubhub apps. The McDonalds deal may yield orders with slightly lower commissions / average order values, but we view the partnership as highly strategic to Grubhub and note prior chain partnerships have not negatively impacted Grubhub’s reported financials.”
According to TipRanks.com, Egbert is a 4-star analyst with an average return of 15.9% and a 41.2% success rate. Egbert covers the Technology sector, focusing on stocks such as Tencent Music Entertainment Group, Spotify Technology SA, and Yelp Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for GrubHub with a $95.75 average price target.
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GrubHub’s market cap is currently $5.36B and has a P/E ratio of 214.47. The company has a Price to Book ratio of 3.61.
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Grubhub, Inc. operates as an online and mobile food-ordering company, which connects diners with local takeout restaurants. Its online and mobile ordering platforms allow diners and corporate businesses to order directly from takeout restaurants in the United States and London.
