Online food delivery firm Just Eat Takeaway.com (LON:JET) has been upgraded to ‘overweight’ from ‘neutral’ by JP Morgan Cazenove as the broker predicted that growth in the firm’s UK market will “accelerate strongly” in the coming year.
The investment bank, which has pegged the firm with a target price of 10,500p, is expecting that the number of UK restaurant sign-ups to the platform will accelerate to over 10% in the second half of its current year.
Analysts also highlighted that eatery sign up rates for competitors Deliveroo and UberEat had stalled at a time when JET was about to “execute well on brand, tech and restaurant sign ups”.
Meanwhile, JP Morgan said the company’s 33% stake in Brazilian delivery group iFood was unlikely to be sold off in the short-term due to its strong growth, with revenues in the business up 80% in the 2020 financial year.
“Giving the growth profile, we value the [iFood] asset at £1.5bn - +30% above consensus”, the bank said.
The positive assessment drove the shares 5% higher to 7,985p in lunchtime trading on Tuesday.