Share of Opentable (OPEN) took a hit last week after the online reservation site's CEO unexpectedly quit, but shares are still twice as high as they were a year ago, and experts say the company's business remains strong.
Bank of America analysts said the shock value of the management shake up will fade, and investors will quickly focus back on the fact that Opentable continues to add new restaurants and attract new users.
Opentable.com also launched a local deals feature through its Spotlight program, which will be a new revenue stream for the company. The program is still in its early stages, but analysts at Oppenheimer think Opentable could "dominate" the restaurant deals space.
Analysts at BofA and Oppenheimer agree that the stock is likely to deliver double-digit gains, with Bank of America analysts putting a price target of $121 on the stock, up 33% from current levels.
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