Just Eat share price: Jefferies continues to see group as ‘buy’

Analysts, however, say company needs to address Deliveroo threat

Just Eat share price: Jefferies continues to see group as ‘buy’

Jefferies continues to see Just Eat (LON:JE) as a ‘buy,’ but argues that the company needs to do more to address the risks posed by rival Deliveroo’s expansion, Citywire reports. The comments came after what the analysts called a ‘coherent’ capital markets day earlier in the week.

Just Eat’s share price rose in the previous session, adding 2.07 percent to close at 770.80p, outperforming the broader UK market, with the benchmark FTSE 100 index ending trading for the day 0.08 percent lower at 7,615.63 points. The group’s shares have added more than 17 percent to their value over the past year, as compared with about a three-percent rise in the Footsie.

Jefferies remains bullish on Just Eat

Jefferies reaffirmed Just Eat as a ‘buy’ yesterday, with a price target of 1,050p on the stock, following the group’s capital markets day earlier in the week.

“The downgraded cycle triggered in the fourth quarter of 2017 results was set to be a bumpy road,” the broker’s analyst Giles Thorne commented, as quoted by CItywire. “After the price action at the results, the response to the capital markets day is another reminder of that.”

The analyst reckons that Just Eat’s presentation was comprehensive, with coherent content, but noted that management had failed to address the risk from Deliveroo’s expansion, commenting that Just Eat’s response ‘felt insufficient to us’.

Other analysts on takeaway delivery group

WebFG News meanwhile reported that Credit Suisse had trimmed its price target on Just Eat from 980p to 920p, expecting  “lower short-term profitability in order for the group to secure an enviable long term position,” while JP Morgan Cazenove had noted that current trading was said to be ‘ahead of guidance’ and overall, felt that the FY18 outlook was ‘conservative’.

As of 08:12 BST, Friday, 29 June, Just Eat PLC share price is 770.80p.

Top Equities Brokers

0 Brokers added for comparison:
Clear all