Despite nice Q4, Oppenheimer downgrades GrubHub on competitive worries

• GrubHub's (GRUB -1.9%) Q4 earnings yeaterday boosted the stock nearly 13% on the strength of margins and some improving guidance, but Oppenheimer is worried about the food firm's competition.
• Oppenheimer's Jason Helfstein downgraded GrubHub to Market Perform, from Outperform. He's got a raised price target of $30, implying 42% upside from today's price of $21.13.
• Margins were nice, but "GRUB will see margin compression on reduced order rates, more expensive customer acquisition costs and lower commission rates" with competitors like Amazon.com and Uber starting to "aggresively pursue food delivery." Other companies' moves into New York could affect revenues and profitability in the next 12-18 months, and Amazon already has a larger user base.
• Elsewhere, Brean and Canaccord Genuity reiterated their Buy ratings. Canaccord has a $35 price target, implying 66% upside.
• Previously: GrubHub up 8% after revenue strength, solid guidance (Feb. 04 2016)