GrubHub Upgraded To Buy From Neutral At Roth Capital

Roth Capital analyst Darren Aftahi upgraded GrubHub (GRUB) to Buy from Hold and raised his price target for the shares to $95 from $92. The stock closed yesterday down 2% to $82.27.

The company's Q4 results were slightly weaker as higher investment suppressed adjusted EBITDA, although diner growth remained healthy at up 22% year-over-year, Aftahi tells investors in a post-earnings research note.

The analyst believes GrubHub's increased marketing spend is likely to "materialize into better growth, thus yielding improving unit economics long-term."

The shares reflect the "majority of these risks" while upside could exist to adjusted EBITDA, especially in second half of fiscal 2019 and into 2020, says the analyst. 

Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.