Broker Forecast - Goldman Sachs issues a broker note on Just Eat
By StockMarketWire | Fri, 28th July 2017 - 11:30
Goldman Sachs today reaffirms its conviction buy investment rating on Just Eat (LON:JE.) and cut its price target to 870p (from 900p).
"Just Eat (LSE:JE.)Â This share price looked pretty doomed for a few days earlier this year but we've a sneaking suspicion Just Eat still intends go up a bit before any calamity sets in.Â Regular readers will be aware of our GaGa nonsense, the ..."
" Just Eat (LSE:JE.) This share price looked pretty doomed for a few days earlier this year but we've a sneaking suspicion it still intends go up a bit before any calamity sets in. Regular readers will be aware of our GaGa nonsense, the ..."
Ha ha yes...what do we know eh?!
Director piling in here too so will have to wait for the froth to settle. Some shares have a certain market appeal that i called "blessed" and the market can see no wrong, these shares move exuberantly upwards on thin valuations propelled by tomorrows jam.. JE. has this quality.
So back to the drawing board for me on this one for now!
...seems very positive, but I worry about all the sales this week prior to the announcement of last year's earnings, which is due on Monday, and also an extremely high P/E ratio. Might be tempted to buy in after a considerable dip, but it's too high for me at the minute.
<b>Just Eat PLC 66.3% Potential Upside Indicated by Jefferies International
Posted by: Amilia Stone 15th December 2016</b>
Just Eat PLC with EPIC/TICKER LON:JE has had its stock rating noted as Reiterates with the recommendation being set at BUY this morning by analysts at Jefferies International. Just Eat PLC are listed in the Consumer Services sector within UK Main Market. Jefferies International have set their target price at 1000 GBX on its stock. This is indicating the analyst believes there is a potential upside of 66.3% from the opening price of 601.5 GBX. Over the last 30 and 90 trading days the company share price has increased 34 points and increased 51 points respectively.
Just Eat PLC LON:JE has a 50 day moving average of 567.13 GBX and a 200 Day Moving Average share price is recorded at 495.09 GBX. The 52 week high for the stock is 623.5 GBX while the year low share price is currently 319.6 GBX. There are currently 677,341,423 shares in issue with the average daily volume traded being 2,788,570. Market capitalisation for LON:JE is £4,138,556,095 GBP.
Just Eat PLC is a United Kingdom-based operator of digital marketplace for takeaway food delivery. The Companys segments include United Kingdom, Australia and New Zealand, Established Markets and Developing Markets. The Established Markets segment includes Canada, Denmark, France Ireland, Norway and Switzerland
These both look to be broadly sensible deals which should help shore up market share in two of Just Eats key territories, helping to drive economies of scale and strengthening the group's presence here. Its consistent with management's strategy, and looks like it will be largely funded from internal resources, so at first glance a positive development for the business
<b><i>JUST EAT is a highly cash generative business, with a clear strategy of using M&A to expand market share in its existing territories. Today's acquisitions, which we expect to be earnings enhancing in aggregate from 2017, look to be mostly funded from internal resources. The hungryhouse deal is expected to be EPS accretive in the first full year of ownership, with a pro forma EBITDA contribution of around £12-15m expected in 2017 thanks to material synergies with the existing business. It provides the group with an enlarged customer base and restaurant network, further entrenching what is a significant market share in the important UK territory, which on current numbers represents c.64% of group orders. The purchase price (potentially £240m in total) implies a maximum 16-20x forward EV/EBITDA multiple including synergies, and potentially a 7-8% pro forma EBITDA impact, based on management's guidance of a pro forma £12-15m EBITDA contribution in 2017. However, the timing of completion is uncertain, - it's subject to approval by the Competition and Markets Authority (CMA) and could take time to close, which will have a bearing on the actual contribution next year. On the other hand, the acquisition of SkipTheDishes is expected to complete today.
SkipTheDishes has contracts with over 2,900 restaurants and 350,000 active customers in the Canadian market. The business has posted very strong growth in 2016, with expected revenues of CAD23.5m (c.£14m), and orders growing 186% to 1.6m in the 10 months to October. There is little geographical overlap with JE's current Canadian operations. Its expected to be moderately earnings dilutive in 2017 and 2018 given its earlier stage, but accretive thereafter.
These both look to be broadly sensible deals which should help shore up market share in two of Just Eats key territories, helping to drive economies of scale and strengthening the group's presence here. Its consistent with management's strategy, and looks like it will be largely funded from internal resources, so at first glance a positive development for the business.
The shares trade on 22.0x 2017 EV/EBITDA and 35.4x earnings. Our 680p target price implies 25.4x EV/EBITDA.</b></i>
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