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Credit Suisse Starts GrubHub Inc. (GRUB) at Outperform

January 11, 2017 2:53 AM EST
Get Alerts GRUB Hot Sheet
Price: $6.72 --0%

Rating Summary:
    7 Buy, 31 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 8 | New: 10
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Credit Suisse initiates coverage on GrubHub Inc. (NYSE: GRUB) with a Outperform rating and a price target of $48.00.

Analyst Paul Bieber lists his key investment highlights as follows:

  1. Very large and fragmented market with low online penetration, a view supported by our proprietary consumer survey;
  2. attractive marketplace model with high incremental margins;
  3. increasing marketplace take rates (commissions);
  4. expect modest margin expansion in 2017;
  5. investments in delivery expand the overall market opportunity; and
  6. EPS option value driven by a potential lower corporate tax rate (current rate is ~40%).

Bieber further states "We like the underpenetrated market opportunity, potential for 4Q acceleration on an easy y/y comp, high incremental margins, increasing take rates and EPS upside option value should Trump successfully implement a corporate tax cut."

For an analyst ratings summary and ratings history on GrubHub Inc. click here. For more ratings news on GrubHub Inc. click here.

Shares of GrubHub Inc. closed at $36.83 yesterday.



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