After The Wall Street Journal reported that GrubHub (GRUB) is considering strategic options, including a possible sale, Stifel analyst John Egbert said he believes such a review "seems prudent" given the business slowdown reported in Q3, though he would not view the report as "necessarily indicative" of whether GrubHub's growth trajectory has changed either positively or negatively. While Egbert finds it difficult to speculate what the most likely outcome will be, he is of the view that some degree of consolidation in the online food industry "appears extremely likely" and he also believes that "Postmates seems bound to become a part of DoorDash, Uber or GrubHub." However, he would be surprised if consolidation among the larger players, excluding Postmates, is imminent, Egbert added. He maintains his Hold rating and $40 price target on GrubHub shares, but noted that these are based on near-term fundamentals and not potential M&A.

Jefferies raised the firm's price target on Uber to $103 from $100 and keeps a Buy rating on the shares. Results should display continued focus on using non-core investments to drive elevated GBV growth, though avoiding a material drop in incremental margins is key to keep investors positive, the analyst tells investors in a preview note for the U.S. Internet group.