Shares of GrubHub (GRUB - Free Report) 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 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 (YELP - Free Report) 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 (GRPN - Free Report) 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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