Just Eat Takeaway.com NV (LSE:JET, NASDAQ:GRUB) is facing a mixed picture with market growth in the UK but more challenging conditions in the US, according to UBS.
The food delivery group increased its share of downloads to 27% in the UK in October from 23% in the first half, narrowing the gap to market leader Uber Eats, the Swiss bank said in a note.
It warned that competition will remain tough, as rival Deliveroo has enjoyed strong sequential growth in the share of downloads.
In the US, efforts to turn around Just Eat unit GRUB are in the early stages and its share of downloads continued to fall, reaching 10% in October.
In Germany, Just Eat remains the market leader with a 64% share of downloads, but Uber Eats at 16% is narrowing the gap.
In Australia, Just Eat’s Menulog improved it download share to 23% in October from 21% in September.
Meanwhile, the Brazilian version of Just Eat – iFood – has seen its download share soar to 62% from 48% in 2020, “which bodes well for Just Eat on any potential stake disposal conversations”, UBS said.
The bank rates Just Eat a ‘buy’ with a target price of 9,800p.
Just Eat shares jumped over 6% to 5,362p in early afternoon trade.