Move follows FTSE 100 company’s full-year results
Numis has placed Just Eat (LON:JE) ‘under review,’ with the online takeaway service gearing up for further investment, Citywire has reported. The comments came after the FTSE 100 company updated investors on its full-year performance this week, revealing that it had made a pre-tax loss last year after it suffered a £180-million hit on its business in Australia and New Zealand.
Just Eat’s share price has been steady in London in today’s session, having added 0.21 percent to 770.20p as of 14:39 GMT. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.34 percent higher at 7,182.06 points. The group’s shares have added more than 37 percent to their value over the past year, as compared with about a two-percent fall in the Footsie.Just Eat ‘under review’
Citywire reported yesterday that Numis’ analyst Richard Stuber had placed his ‘add’ recommendation on Just Eat ‘under review’ after the takeaway service announced this week that it would spend an extra £50 million to battle competition from rivals such as Deliveroo and Uber Eats.
“Investment is expected to be materially accelerated, focusing on extending its delivery services in the UK and Canada,” the analyst pointed out, adding that as a consequence, the full-year earnings guidance of between £165 million and £185 million stood 23 percent below consensus at the midpoint.Other analysts on group
JPMorgan Chase & Co reiterated its ‘overweight’ stance on Just Eat yesterday, while Deutsche Bank continues to see the online takeaway service as a ‘hold’. The analysts have not specified price targets on the shares. According to MarketBeat, the FTSE 100 group currently has a consensus ‘buy’ rating and an average price target of 916.86p.