Just Eat Takeaway.com NV has seen its ‘buy’ rating removed by Deutsche Bank analysts after surging upon agreeing to a €4.1 billion (£3.4 billion) takeover by Prosus.
Dubbing the acquisition a “compelling strategic fit,” Deutsche lifted Just Eat’s share price target from €16.00 to €20.30 to reflect Prosus’ offer and moved it to a ‘hold’ rating.
Shares had jumped from €12.42 as of Friday’s close to €19.09 come the end of Monday’s session on news of the Dutch investment firm’s offer.
Deutsche noted the deal would complement Prosus’ existing food delivery portfolio outside of Europe, leaving “substantial synergy potential” despite Just Eat’s struggles on its own.
Prosus shares had dropped on the news though, Deutsche flagged, adding this may have been due to the “perceived premium paid” for Just Eat.
“While we were surprised, this is a scenario we thought possible given the group strategy,” analysts added.
A ‘buy’ rating and €57.00 price target were held for Prosus.
Just Eat climbed a further 0.7% to €19.28 on Tuesday.