Collins Stewart Sees Some Softness In OpenTable (OPEN) 3Q, But Says Shares Should Be Bought
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Price: $3.47 -3.07%
Rating Summary:
4 Buy, 11 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
4 Buy, 11 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Collins Stewart reiterated its Buy rating and $104 price target on OpenTable (NASDAQ: OPEN) ahead of Q3 results due tonight after the close.
The firm said while they expect Q3 will be "slightly soft" it will still show strong growth. The firm sees revenues slightly below the consensus of $35.8M but EPS at or above the consensus of $0.30, due to operating leverage in the model.
They see revenue growth of 40%+ Y/Y rate and reservations at close to 50% rate, as the secular shift to online reservations continues.
Collins Stewart analyst notes that shares are off 63% from their April highs on investors' concerns on increasing competition in the online restaurant reservation space, and a worsening economy. They however believe the economy is in a better shape than feared and competitive fears are unfounded.
"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. In addition, the Google/Micros partnership should
turn out to be more related to interoperability with Google offerings such as Wallet as opposed to a direct competitor to OpenTable."
They firm said the pullback creates long-term buying opportunity.
For more ratings news on OpenTable click here and for the rating history of OpenTable click here.
Shares of OpenTable closed at $43.86 yesterday.
The firm said while they expect Q3 will be "slightly soft" it will still show strong growth. The firm sees revenues slightly below the consensus of $35.8M but EPS at or above the consensus of $0.30, due to operating leverage in the model.
They see revenue growth of 40%+ Y/Y rate and reservations at close to 50% rate, as the secular shift to online reservations continues.
Collins Stewart analyst notes that shares are off 63% from their April highs on investors' concerns on increasing competition in the online restaurant reservation space, and a worsening economy. They however believe the economy is in a better shape than feared and competitive fears are unfounded.
"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. In addition, the Google/Micros partnership should
turn out to be more related to interoperability with Google offerings such as Wallet as opposed to a direct competitor to OpenTable."
They firm said the pullback creates long-term buying opportunity.
For more ratings news on OpenTable click here and for the rating history of OpenTable click here.
Shares of OpenTable closed at $43.86 yesterday.
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