Shares of GrubHub Inc. fell 3.8% in Tuesday morning trading after analysts at Barclays downgraded the stock to underweight from equal weight. The analysts, led by Deepak Mathivanan, like GrubHub’s prospects in the long run but worry about the stock’s high valuation relative to internet peers and the “incremental competitive risks” brought upon by Uber Technologies Inc.’s and Amazon.com Inc.’s efforts in food delivery. GrubHub shares have performed better than the S&P 500 Index over the past three months, Mathivanan wrote. The stock now trades at 21 times estimates for 2019 earnings before interest, taxes, depreciation and amortization, making it more expensive on that metric than several other internet stocks that Mathivanan tracks. He also thinks that competitor UberEats has been growing nicely over the last year or two. GrubHub shares are up 75% over the past 12 months, with the S&P 500 up 24% in that time.
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