Shares of OpenTable (NASDAQ:OPEN) avoided the economic gloom hurting Wall Street on Wednesday as Bank of America-Merrill Lynch upgraded the stock to “buy.”
According to Reuters, BofA-Merrill upped the restaurant reservation site from “neutral” to “buy” on its strong core business traction and new initiatives expected to expand the company’s business opportunities.
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BofA also lifted its price target on OpenTable from $50 to $63 and said the new initiatives are likely to lead to meaningful gains in revenue and earnings in 2011 and 2012.
OpenTable’s stock responded well to the upgrade, gaining 3.87% to $51 Wednesday morning despite a 0.67% decline in the S&P 500 amid worries about the economy. The company’s shares have gained more than 5% over the past month and surged 92% so far in 2010.
The BofA call on OpenTable stands in contrast to Stifel Nicolaus’s downgrade of the company from “buy” to “hold” on Tuesday.