NEW YORK (TheStreet) -- JMP Securities lowered its price target on GrubHub (GRUB) - Get Reportstock to $35 from $55 on Wednesday, after the company's 2015 third quarter results missed analysts' expectations.
The Chicago-based food delivery company reported third quarter earnings of 8 cents per share on revenue of $85.7 million, a 38% year-over-year increase.
Analysts surveyed by Thomson Reuters were expecting the company to report earnings of 14 cents per share on revenue of $86.5 million.
"Website outages in the quarter, increased delivery investment, and weather all impacted 3Q results and speak to the complexity of the model," JMP Securities said. The firm maintained its "market outperform" rating on the stock.
GrubHub is also effectively expanding its total addressable market as national restaurant chains pilot its delivery services, JMP Securities added.
Shares of GrubHub were down 0.98% to $24.25 in midday trading on Wednesday.
Separately, TheStreet Ratings team rates GRUBHUB INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate GRUBHUB INC (GRUB) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.
You can view the full analysis from the report here: GRUB