Collins Stewart Starts OpenTable (OPEN) at Buy; Network Effect Stock With High Operating Leverage

Collins Stewart initiates coverage on OpenTable (NASDAQ: OPEN) with a Buy. PT $108.

Collins analyst says, "OpenTable drives incremental diner demand to restaurants, helping them increase capacity utilization, while saving diners time and effort. Restaurants pay OpenTable a per diner reservations fee and a monthly subscription fee. The offering has a large ROI and low breakeven for restaurants. OpenTable has 90%+ marketshare in the space and very little direct competition...Believe street is underestimating both revenue trajectory and operating leverage...Premium valuation justified given growth profile, conviction level and historical multiples."

For more ratings news on OpenTable click here and for the rating history of OpenTable click here.

Shares of OpenTable closed at $82.56 yesterday.

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