Goldman Sachs Boosts Numbers on OpenTable (OPEN) Following Solid Q4, Maintains Neutral Rating
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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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Goldman Sachs raised estimates and its price target on Neutral-rated OpenTable (NASDAQ: OPEN) from $44 to $57 following "solid" Q4 results.
The firm notes profits beat forecasts by $0.07 on leverage in the model and a 1% decline in share count post buyback. Also, the top-line beat by $0.3 million.
The firm's 2012 revenue and PF EPS estimates go to $168 mn/ $1.56 from $175 mn/ $1.30. 2013 estimates go to $206 mn/$2.00 from $216 mn/$1.79. 2014 estimates go to $250 mn/$2.47, with EPS raised on higher EBITDA and lower share count post buyback.
Goldman notes seated diner growth decelerated less than expected, driven by mobile strength (now 16% of diners). Q1 should decelerate further due to tougher industry comps, trends observed qtd and seasonally higher restaurant attrition, the firm notes, "though the rollout of ERB v10 and the new pricing bundles should offset that to some extent."
The company plans to lower international pricing to drive table availability, but has seen notable international wins which Goldman says "are positive indications of the direction of its international business."
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 $51.45 yesterday.
The firm notes profits beat forecasts by $0.07 on leverage in the model and a 1% decline in share count post buyback. Also, the top-line beat by $0.3 million.
The firm's 2012 revenue and PF EPS estimates go to $168 mn/ $1.56 from $175 mn/ $1.30. 2013 estimates go to $206 mn/$2.00 from $216 mn/$1.79. 2014 estimates go to $250 mn/$2.47, with EPS raised on higher EBITDA and lower share count post buyback.
Goldman notes seated diner growth decelerated less than expected, driven by mobile strength (now 16% of diners). Q1 should decelerate further due to tougher industry comps, trends observed qtd and seasonally higher restaurant attrition, the firm notes, "though the rollout of ERB v10 and the new pricing bundles should offset that to some extent."
The company plans to lower international pricing to drive table availability, but has seen notable international wins which Goldman says "are positive indications of the direction of its international business."
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 $51.45 yesterday.
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