"The company has a strong competitive position as the largest online marketplace for ordering takeout and delivery food in the U.S.," analysts said.
GrubHub should be able to exploit its networks effects and brand name recognition to continue to expand into what historically were telephone-pen-paper transactions, according to the analyst note.
Over the long term, its investments in delivery infrastructure should drive demand for more orders and should be a profitable business, the firm noted.
Separately, TheStreet Ratings team rates GRUBHUB INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GRUBHUB INC (GRUB) a HOLD. 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows: