Is Wall Street Too Bearish on Grubhub?
Grubhub (NYSE: GRUB) lost nearly 30% of its value this year as concerns about the meal delivery company's slowing growth and rising expenses piled up. Yet most analysts still remain either bullish or neutral on Grubhub, with only one major analyst slapping the stock with a "sell" rating.
However, several Wall Street firms recently trimmed their price targets on the stock, currently trading around $56 a share. In late September, Guggenheim cut Grubhub's price target from $110 to $72 and removed it from its "Best Ideas" list, but maintained its "buy" rating on the stock.
In mid-October, Morgan Stanley cut its price target from $68 to $59, while Barclays reduced its price target from $62 to $51. Morgan Stanley maintains an "equal weight" rating on the stock, while Barclays maintains an "underweight" rating. Short-seller Jim Chanos, who famously bet against Enron, also recently disclosed a short position in Grubhub.
Source Fool.com
