Benchmark Upgrades OpenTable (OPEN) to Buy; Superior Position, Cheap and Possible Buyout
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Price: $2.15 -3.59%
Rating Summary:
5 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
5 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Benchmark upgraded OpenTable (NASDAQ: OPEN) from Hold to Buy with a price target of $50, citing superior growth and competitive position, improving economic trends and peer average valuation.
While investors are concerned about increased North America competition, the firm said these concerns are "overblown." The company has 44% penetration of addressable restaurants, a feat that took 10 years to achieve. Churn is relatively steady at 1% per month, the firm notes, and driven mostly by restaurant failures versus competition.
Internationally, the final integration stage for Toptable is underway, possibly
removing an operational overhang, the firm notes.
Also since November, the National Restaurant Association's performance index has been above 100, signaling industry expansion.
Shares have undeperformed YTD the firm notes. OpenTable is up just 2%, versusthe 18% run in the NASDAQ.
Also, OpenTable is a potential takeover target. "It represents a desirable and defensible business for online consumer facing Internet companies like Google or Microsoft," the analyst notes
For an analyst ratings summary and ratings history on OpenTable click here. For more ratings news on OpenTable click here.
Shares of OpenTable closed at $40.00 yesterday.
While investors are concerned about increased North America competition, the firm said these concerns are "overblown." The company has 44% penetration of addressable restaurants, a feat that took 10 years to achieve. Churn is relatively steady at 1% per month, the firm notes, and driven mostly by restaurant failures versus competition.
Internationally, the final integration stage for Toptable is underway, possibly
removing an operational overhang, the firm notes.
Also since November, the National Restaurant Association's performance index has been above 100, signaling industry expansion.
Shares have undeperformed YTD the firm notes. OpenTable is up just 2%, versusthe 18% run in the NASDAQ.
Also, OpenTable is a potential takeover target. "It represents a desirable and defensible business for online consumer facing Internet companies like Google or Microsoft," the analyst notes
For an analyst ratings summary and ratings history on OpenTable click here. For more ratings news on OpenTable click here.
Shares of OpenTable closed at $40.00 yesterday.
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