Shares of GrubHub (NYSE:GRUB) soared to a new all-time high on Monday on the back of an analyst upgrade and continued momentum from its most recent deal.
Morgan Stanley (NYSE:MS) analyst Brian Nowak upgraded Grubhub to “overweight” and raised his price target to $59 per share on Monday. The Morgan Stanley analyst upgraded the company based partly on new growth and scalability potential.
The move comes after Grubhub announced it purchased Yelp’s (NYSE:YELP) Eat24 business for a reported $287.5 million last week. Grubhub’s acquisition is set to help the growing food delivery platform expand its reach with a new, more extensive list of restaurants and eateries.
On top of the Yelp deal, Grubhub partnered with Groupon (NASDAQ:GRPN) to bring the food delivery company’s services to the deal-based platform. Groupon customers will now be able to order Grubhub food directly on Groupon’s app or website, along with other exclusive deals.
GrubHub’s stock price climbed 8.30% on Monday. The food delivery service company reached a new 52-week and all-time intraday high of $57.26 a share, and closed at $56.99 per share.
The company is currently a Zacks Rank #3 (Hold) and scored a “B” grade for Growth in our Style Score system.
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Groupon, Inc. (GRPN): Free Stock Analysis Report
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GrubHub Inc. (GRUB): Free Stock Analysis Report
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