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OpenTable Inc.'s shares plunged in trading Monday after a Barclay's Capital analyst lowered his rating on the online reservation company, saying he expects the company's second-quarter results may fall short of expectations.
THE SPARK: Analyst Mark May downgraded his rating on the company to "Equal Weight" from "Overweight", saying that his quarterly checks suggest the company is still seeing softer reservations growth and that its addition of new restaurants has trended below his expectations.
He has a $43 price target on the company's stock.
THE ANALYSIS: May said the slowdown may be due to cyclical or restaurant industry trends and he remains bullish on the company's long-term growth outlook and its competitive position.
SHARE ACTION: Open Table's shares fell $5.22, or 11.6 percent, to $39.79 in afternoon trading. Its shares have fallen sharply from a peak almost a year ago of $90.89. They dropped to a low for the past year of $31.54 in late November.