On Monday, BofA Securities announced the reinstatement of coverage on Just Eat Takeaway.com NV (JETL:LN) (OTC: TKAYF), issuing a Buy rating and setting a price target of €16.00. The move comes after Just Eat Takeaway's recent divestiture of Grubhub, which is seen as a positive development by the firm. According to InvestingPro data, the company currently has a market capitalization of $2.5 billion, with its stock trading near $12.75, showing potential upside based on Fair Value estimates.
According to BofA Securities, the sale of Grubhub has addressed a major concern for investors, reducing risk for Just Eat Takeaway's balance sheet. This strategic move is expected to refocus the company's efforts on its Northern European operations, where it holds significant market share and demonstrates stable profitability. InvestingPro analysis shows the company maintains a healthy current ratio of 1.54 and operates with a moderate debt level, though it reported a net loss in the last twelve months.
In addition to its strong presence in Northern Europe, Just Eat Takeaway also maintains a leading position in the UK market. BofA Securities highlights the company's continued growth in logistics as a catalyst for potential margin improvements. The firm's price objective of €16 suggests that there is approximately 30% potential upside from the current share price of Just Eat Takeaway's stock.
With annual revenue of $5.5 billion and a gross profit margin of 23.3%, the company shows significant operational scale. Want deeper insights? InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis.
The analyst from BofA Securities expressed confidence in Just Eat Takeaway's market position and financial outlook. "We also reinstate with a Buy on Just Eat Takeaway, as the group's recent Grubhub sale removes a key overhang, de-risks the balance sheet, and shifts focus back to Northern Europe, where the group has an appealing market share & stable profitability, along with the UK where TKWY maintains a leading position with continued growth in logistics set to deliver margin uplift," the analyst stated.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.