Just Eat share price heads south as Peel Hunt says ‘sell’

Analysts point to potential tie-up between Uber and Deliveroo

Just Eat share price heads south as Peel Hunt says ‘sell’

Shares in Just Eat (LON:JE) have fallen into the red in today’s session as Peel Hunt trimmed its stance on the blue-chip food delivery company. WebFG News quoted the analysts as pointing to reports of a potential tie-up between Uber and the FTSE 100 group’s rival Deliveroo.

As of 14:30 BST, Just Eat’s share price had given up 1.36 percent to 593.60p, underperforming the broader market rally which has seen the benchmark FTSE 100 index 1.67 percent to 7,055.20 points. The group’s shares have given up just under a fifth of their value over the past year, as compared with about a 6.4-percent dip in the Footsie.

Peel Hunt trims stance on Just Eat

Peel Hunt lowered its rating from ‘buy’ to ‘sell’ today and slashed its price target on the shares from 950p to 520p, pointing to reports of a potential tie-up between Uber and Deliveroo.

“We postulate that the two of them (merged or otherwise, let’s call them Uberoo), around the world, could create an Uberoo-esque wave that eventually sees the demise of Just Eat,” the broker explained, as quoted by WebFG News, adding that both Uber and Deliveroo were capable of out-investing the company in delivery and are entering the more lucrative marketplace sector.

Other analysts on delivery group  

UBS reaffirmed Just Eat as a ‘buy’ on Friday, without specifying a price target on the shares, while earlier this month, Goldman Sachs, which rates the company as ‘conviction-buy,’ lowered its valuation on the stock from 1,080p to 1,060p. According to MarketBeat, the FTSE 100 group currently has a consensus ‘buy’ rating and an average price target of 854.38p.

Just Eat is scheduled to update investors on its third-quarter performance on November 1.

As of 15:00 GMT, Monday, 29 October, Just Eat PLC share price is 597.20p.

Top Equities Brokers

0 Brokers added for comparison:
Clear all