Collins Stewart Maintains a 'Buy' on OpenTable (OPEN); Pullback Creates a Good Buying Opportunity

Collins Stewart maintains a 'Buy' on OpenTable (NASDAQ: OPEN) price target of $104.00.

Collins analyst says, "OpenTable stock pullback overdone - OpenTable has strong barriers to entry and both Google (Nasdaq: GOOG) and Zagat as partners Opentable’s shares were down 8% on news of the Google/Zagat deal, on fears that Google may get into online restaurant reservations space. We believe such fears are unfounded: 1) OpenTable's business model is different than Zagat. There are many players that focus only on consumer side of the equation, such as Zagat, Yelp, Citysearch, Yahoo!, and Google. OpenTable's business model completes the loop between demand and seat supply. Google's acquisition of Zagat simply consolidates two players on the consumer side; 2) Both Google and Zagat have OpenTable as a partner, which provides the back-end reservations infrastructure; 3) Strong barriers to entry - Opentable has locked in the hard to replicate labor-intensive part- offline sales to and customization of individual local restaurants and building a scalable reservations platform."

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

Shares of OpenTable closed at $57.50 yesterday.

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