#5 - GrubHub (NYSE:GRUB)
GrubHub (NYSE:GRUB) has seen its stock price increase 78% in 2020. The online food delivery service has been an essential service not only for consumers but for restaurants who needed a lifeline to their customers.
Analysts are exercising a firm “hold” rating on the stock with 24 out of 29 analysts giving the stock a hold rating. However, three out of the other five analysts give the stock a sell rating. And the stock’s 12-month price target is forecasting a downside of over 35%.
There are two reasons for this. The first is that while GrubHub was, and remains, well-positioned for the global pandemic, it’s not a moat. And there is a lot of competition that is already in the space and not much of an obstacle for other companies to enter.
Plus, call it “Covid fatigue” but analysts are looking to the future and are skeptical that the company’s growth is sustainable in a post-Covid environment. While that may still be a way away, the market tends to be forward-looking, which suggests profit-taking may be the way to go.
About Just Eat Takeaway.com
Just Eat Takeaway.com N.V. operates an online food delivery marketplace. The company focuses on connecting consumers and restaurants through its platforms. It serves in the United Kingdom, Germany, Canada, the Netherlands, Australia, Austria, Belgium, Bulgaria, Denmark, France, Ireland, Israel, Italy, Luxembourg, New Zealand, Norway, Poland, Portugal, Romania, Spain, and Switzerland, as well as through partnerships in Colombia and Brazil.
Read More - Current Price
- $61.05
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
