Shares of OpenTable are off about 1% today, which doesn’t seem like a lot, except that all OpenTable does is go up, and the market is up today.The culprit is a downgrade from Citi internet analyst Mark Mahaney:
This Is Purely A Valuation Call — Shares are up 80% since early September and are up approx 25% since the company’s Q4 EPS results. Much more important, @ $107, OPEN now trades at 51X our 2011 EBITDA of $52MM and 34X our 2012 EBITDA of $80MM. We believe our outlook for a close to 45% 3-year EBITDA per share CAGR supports its current multiple, but not one that is materially higher.
Fundamentally, Mahaney is still really bullish sounding, which is probably why it’s not down more:
We upgraded OPEN to a Buy (1H) last September on stronger-than-expected fundamental trends and the development of the company’s new Spotlight offering. Through these movements, our consistent, core OPEN Thesis (most recently laid out in our March 15th note) has been: 1) A significant secular growth opportunity; 2) A highly scalable model; 3) A clear play off of Mobile Internet; 4) Significant and material new Revenue streams; and 5) One of Internet Small Cap’s best Mgmt teams.
Just in case you weren’t aware of the run that this stock has had…