Guggenheim Sees Potential GrubHub (GRUB) Margin Recovery in 2019 - Guggenheim

Guggenheim analyst Matthew DiFrisco reiterated a Buy rating and $165 price target on GrubHub Inc. (NYSE: GRUB) and maintains the stock as a Best Idea.

DiFrisco commented, "Post the YUM! Investor Meeting we updated our estimates, factoring in 99k total restaurants, in line with our checks. We are raising our 2019 net revenue estimates to ~$1.5bn based on our restaurant supply trend. But we are conservatively lowering our EBITDA margin reflecting the upfront investments and inefficient op margins from entering new markets at a rapid pace. However, based on LevelUp and delivery/service fees driving a greater capture rate we see a pathway to leverage despite the rapid onboarding of restaurants."

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 $76.40 yesterday.

You May Also Be Interested In

• Freedom Broker Double Downgrades Mosaic (MOS) to Sell
• Stifel Reiterates Buy Rating on Coherent (COHR)
• Needham Reiterates Buy Rating on Lucid Diagnostics Inc (LUCD)