UPDATE: Goldman Sachs Upgrades OpenTable to Buy on Mobile/Cloud Opportunities

In a report published Friday, Goldman Sachs analyst Heath P. Terry upgraded the rating on OpenTable (NASDAQ: OPEN) from Neutral to Buy, and raised the price target from $54.00 to $76.00.

In the report, Goldman Sachs noted, “We are upgrading OpenTable to Buy from Neutral with a $76 12-month target price, 22% upside from current levels. Since the July 18 announcement that Yelp would acquire SeatMe, an early stage OpenTable competitor, OPEN shares have declined 6.5% vs. the S&P 500 at +0.2% and are down 16% from prior highs. We believe this has created an opportunity ahead of what we expect to be a strong quarter of seated diner growth, increasing product innovation, the 3Q launch of the cloud-based ERB, improving mobile & desktop conversion, and potentially beneficial changes to the company's rewards program.”

OpenTable closed on Thursday at $62.97.