The price pressure at Just Eat Takeaway is excessive. This was stated by Credit Suisse analysts on Tuesday, who reduced the price target from £ 124.00 to £ 110.00, but with a repetition of the Outperform advice.
Several meal delivery companies have announced that they will be active in Germany, where Just Eat has a dominant position.
“Given Just Eat Takeaway’s strong position in Germany and the group’s response and current appreciation, we remain positive about JET.”
Recently, Uber reported that it is also entering the German market, while Delivery Hero returns after having previously sold the German business to Just Eat Takeaway. A job advertisement by the American company Dodash seems to indicate that this meal delivery company also has plans for Germany.
Just Eat responded by indicating that it will also deliver messages in Germany. “A planned and logical step,” the analysts said. “JET remains in the lead to successfully defend the German market position.”
However, according to the analysts, the news is not a good signal for the entire market, and especially not for Just Eat.
Credit Suisse reduced the valuations for Just Eat’s modified EBITDA by 31 and 37 million euros in 2021 and 2022. At Delivery Hero this was 50 and 4 million euros.