Online-ordering platform GrubHub Inc. could see its customer base expanding to five times its current size as consumers in smaller cities get behind the online ordering trend, said Morgan Stanley analysts. "We believe the industry is in the early stage of a broad-based secular shift to online take-out/delivery ordering," the analysts wrote in a note to clients on Thursday. They initiated coverage of the company's stock with an overweight rating and a $50 price target, which is 14% above its current trading price. The stock, which was indicated about 3% higher in premarket trade, has run up 17% over the past three months, compared with a 2% gain in the S&P 500.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below