Just Eat's shares fell more than five per cent today as another analyst cut its rating on the FTSE 100 company.
The decline follows a major drop in the firm's share price last week after it swung to a loss in annual results.
Today analysts at Deutsche Bank cut Just Eat's rating to "sell" from "hold", warning that that the firm's move into delivery would weigh on profitability and that it did not have "first mover advantage" in the marketplace.
Read more: Deliveroo: We're going on a hiring spree to keep up with growth
Shares fell to a low of 745.8p in early trading, after the German bank also cut its target price to 630p from 830p. At the time of writing, shares were trading at 761p.
Deustche Bank upped its stake in the company last week following the share price crash, increasing its holdings to just over six per cent of issued capital.
Bank of America Corporation also took the opportunity to scoop up extra helpings of Just Eat last week, increasing its stake to 5.75 per cent.
The loss was down to new chief executive Peter Plumb's plan to put a high level of investment into working with branded restaurants. Laith Khalaf, a senior analyst at Hargreaves Lansdown said the news had rather overshadowed what were otherwise an excellent set of numbers for 2017."
Read more: Meet the 26 tech startups that could be the future of the tech industry
Bagikan Berita Ini
0 Response to "Here's why Just Eat's shares are still falling"
Post a Comment