In recent months, one of the largest contributor to the positive movement in OpenTable’s (NASDAQ:OPEN) stock price has been the equity ratings and price targets attributed by various analysts. The online restaurant reservation company saw its shares rally from under $40 at the end of last week to almost $46 over the first three days this week. And while the growing optimism among investors about a better-than-expected earnings season is no doubt a factor behind this jump, a bigger push came from the upgrade in OpenTable’s ratings by Barclays (NYSE:BCS).  Known to be a popular momentum stock, OpenTable’s value swelled by nearly 15% when Barclays upgraded its shares to “overweight”. Equity analysts also helped OpenTable gain last month, when the company’s shares priced at around $35 then were given price targets of $45 and $49 by Goldman Sachs (NYSE:GS) and Credit Suisse (NYSE:CS) respectively.
We certainly acknowledge the fact that there are some plausible scenarios that present a significant downside to our price estimate, and highlight these scenarios in our article OpenTable Downside Scenarios to Our $65 Estimate.Notes:
- OpenTable Inc (OPEN) Shares Upgraded to a “Overweight” Rating by Barclays Capital (BCS) Analysts, Localized USA, Jan 9 2012 [↩]