Liberum remains bullish on Just Eat (LON:JE), arguing that the takeaway service’s short-term strategy to take market share is the right one, Citywire reports. The comments mark a boost for the mid-cap group which recently announced the departure of its chief executive Peter Plumb.
Just Eat’s share price has fallen deep into the red in London in today’s session, having given up 2.30 percent to 705.60p as of 14:47 GMT. The stock is underperforming the broader UK market, with the FTSE 250 having climbed into positive territory and currently standing 0.56 percent higher at 18,807.38 points. The group’s shares have lost about 13 percent of their value over the past year, as compared with about a 7.7-percent fall in the Footsie.
Liberum still bullish on Just Eat
Liberum reaffirmed Just Eat as a ‘buy’ yesterday, boosting its price target on the shares from 1,250p to 1,320p. Citywire reported that the broker’s analyst Ian Whittaker had updated his estimates following a statement from the company which gave guidance for full-year 2019 revenues around 10 percent higher than previous estimates, which, the analyst reckons, demonstrates the “strong revenue growth inherent in the business”.
“Just Eat’s strategy of investing to take market share in the short term is exactly the right one given the dynamics of the food delivery portal market and that it should see the benefits of rapid margin expansion in the medium to longer term as its dominance is cemented,” he pointed out, as quoted by the newswire.
Other analysts on mid-cap group
Goldman Sachs, which rates Just Eat as a ‘buy,’ set a price target of 1,060p on the shares today. According to MarketBeat, the company currently has a consensus ‘buy’ rating and an average price target of 876.88p.