Shares in Just Eat (LON:JE) have jumped in London in today’s session as Liberum lifted its price target on the online takeaway service. Proactive Investors quoted the analysts as saying that the group’s investment strategy was the right course to gain market share early.
As of 13:14 GMT, Just Eat’s share price had added 2.42 percent to 592.00p, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.09 percent lower at 7,010.28 points. The group’s shares have lost more than 27 percent of their value over the past year, as compared with about a six-percent dip in the Footsie.
Liberum hikes valuation on Just Eat
Liberum, which has a ‘buy’ rating on Just Eat, lifted its valuation on the shares from 850p to 1,250p today. Proactive Investors quoted the analysts as saying in a note to clients that as an online classified portal, the FTSE 100 group “should be trying to gain as much market share as it can now to reap the benefits later,” pointing to the historical classified directories markets which were similar and had “very high barriers”.
“The history of both the Classified Directories and online classified portals show when market leadership has been established, then margins will naturally rise,” the broker elaborated, adding that it saw the same dynamic as likely to work with Just Eat.
Other analysts on FTSE 100 group
JPMorgan Chase & Co lifted its rating on Just Eat to ‘neutral’ last week, valuing the shares at 603p, while earlier this month, Bank of America, which is bullish on the company with a ‘buy’ rating, set a price target of 1,000p on the stock. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 871.82p.