Will This Upgrade Help OpenTable (OPEN) Stock Today? (Update)

Update (9:37 a.m.): Updated with Thursday market open information.

NEW YORK ( TheStreet) --  Citigroup upgraded  OpenTable  ( OPEN) to "buy" from "neutral" and set a $90 target price. The firm noted diners and restaurant adds are tracking to the upside. 

The stock was up 3.23% to $79.52 at 9:36 a.m. on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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Separately, TheStreet Ratings team rates OPENTABLE INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate OPENTABLE INC (OPEN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • OPEN's revenue growth has slightly outpaced the industry average of 16.3%. Since the same quarter one year prior, revenues rose by 21.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • OPEN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, OPEN has a quick ratio of 2.43, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, OPENTABLE INC's return on equity exceeds that of both the industry average and the S&P 500.
  • OPENTABLE INC has improved earnings per share by 34.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, OPENTABLE INC increased its bottom line by earning $1.40 versus $1.04 in the prior year. This year, the market expects an improvement in earnings ($1.84 versus $1.40).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 38.2% when compared to the same quarter one year prior, rising from $7.46 million to $10.31 million.
  • You can view the full analysis from the report here: OPEN Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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