Grubhub (GRUB) - Get Report could fetch as much as $75 a share if Uber (UBER) - Get Report decides to move forward with an acquisition of the food delivery service, Barclays analysts said in a Wednesday note.
That per-share price would value Grubhub at $7.2 billion.
Grubhub closed Tuesday's session up 29% at $60.39 with a market cap of $5.55 billion.
The investment firm maintained its positive rating on the Chicago company while lifting its price target to $79 a share from $55.
Barclays kept its Uber price target flat at $36, but said those shares could reach the firm's upside of $43 if it does complete an acquisition of Grubhub.
"Under an all-stock transaction, this would imply 2.3 shares of Uber per Grubhub share (above some of the ratios discussed in the press)," said analyst Deepak Mathivanan.
"In addition to meaningful upside, ... this deal allows Grubhub shareholders to participate in what we think could be a strong ride-hail-industry recovery in 2020-2021."
Grubhub shares at last check fell 3.7% to $58.14. Shares of Uber, the San Francisco ride-hailing company, fell 0.9% to $32.13.
Mathivanan also notes that the food-delivery industry has consolidated in other countries.
"A combination of UBER and GRUB could significantly accelerate the improvements in profitability in the space," the analyst wrote.
"As is typically the case with combinations in a four-player market (especially a space with huge losses), these two merged entities are likely to see significant synergies from better commission rates, lower customer discount, and a more efficient delivery fleet."