Benchmark Lowering Estimates On OpenTable

Benchmark Capital is lowering earnings estimates on OpenTable (NASDAQ: OPEN), but is keeping the Hold rating and $90 price target on shares.

In a note to clients, Benchmark Capital writes, "OpenTable appears to be facing more competition domestically from Urbanspoon's RezBook, Livebookings and Eveve. CityPages recently reported that two notable restaurants in the Twin Cities dropped OpenTable. These restaurants apparently switched to Eveve, a European competitor that has 300 restaurants, due to lower cost and more flexibility. Competition may be slowing OpenTable's restaurant growth. Our checks indicate OpenTable added meaningfully fewer restaurants in 2Q compared with prior quarters. We reduce our 2Q estimate for restaurant subscription revenue from $12.8 million to $12.4 million. This could affect reservations as well."

Shares of OPEN closed at $82.71 yesterday.