Credit Suisse maintains an Outperform rating on Grubhub (NYSE:GRUB) and raises the target from $42 to $52. GRUB has a Neutral average Sell Side rating.
The firm’s restaurant tracker indicates that quick server restaurant supply is continuing to ramp “at a strong rate.”
Analyst Stephen Ju says the tracker shows GRUB executing “against its previously-outlined strategy to onboard and expeditiously convert non-partner into partner supply via promotional incentives.”
Potential headwinds include higher-than-expected spending to fuel market growth and using aggressive delivery promos to keep up with GRUB’s peers.