Just Eat Takeaway has lots about it to like according to Credit Suisse, but more pain might be on the way for the shares and accordingly the bank has cut its target price to £39 from £50.
US subsidiary Grub is one of the reasons for the recent slide, says Credit Suisse, but more action alongside its disposal might be required before the share price reflects some of that potential.
Organically, there is some encouragement, notably the first quarter profits upgrade and the McDonald’s agreement, but non-profitable tech is a hard sell to investors at present and it will require self-help by Just Eat to change investors’ downbeat perception.
“JET needs to deliver to make that happen; until it does, the shares could struggle”, though ‘outperform’ remains its investment view,
Shares were little changed today at around £13.