NEW YORK (TheStreet) -- GrubHub's (GRUB) - Get Report stock price target was raised to $45 from $35 with a "market outperform" rating at JMP this morning after reporting fiscal 2016 second quarter results before Thursday's opening bell.
GrubHub reported adjusted earnings of 23 cents per share on revenues of $120.2 million, beating analysts' estimates of 19 cents per share on revenues of $114.18 million.
Guidance for fiscal year 2016 revenue is up to $480 million-$488 million, higher than the company's previous projection of $450 million-$465 million.
Based on GrubHub's "strong results," JMP raised its price target, saying the company's decision to start delivering food directly to customers, rather than just to the restaurant, as well as tech innovation and improved marketing all contributed to the second quarter figures.
"We continue to believe there are multiple catalysts over the next several quarters enabled by GRUB's new technology platform, which should lead to improving conversion rates as delivery potentially reaches breakeven as early as 2017," the firm wrote in the analyst note.
GrubHub is a New York-based online platform for restaurant pick-up and delivery orders.
Shares of GrubHub are down by 3.67% to $36.75 in pre-market trading on Friday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate GRUBHUB INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.
You can view the full analysis from the report here: GRUB