|They already have a presence in London, fits their biz model.|
|Care to develop a bit on that? Is Amazon on the market for food delivery co's?What makes you think there is even such a possibility?|
|I hope they get bought by Amazon.|
|Brill thanks. Dwarfs my 650p target.|
|Broker Forecast - Goldman Sachs issues a broker note on Just Eat
By StockMarketWire | Thu, 24th November 2016 - 14:00
Goldman Sachs today reaffirms its conviction buy investment rating on Just Eat (LON:JE.) and raised its price target to 880p (from 760p).
Good to see GS expecting a share price growth of over 50%...|
|from8 - I agree with what you are saying, this may well shoot up, I was not saying it's over for the company, I was simply saying, maybe, just maybe there is a lull before the storm, if they can reshape their strategy as they move forward. With the likes of Deliveroo and Uber Eats coming on their patch time will tell.
The key is they are targeting different clients and markets, so it should be fine. Once a product cements itself it, often its hard to change, well for the client, no point changing.
I am watching like you, but waiting for the right signals as I think it could go either way.|
|ISAReadyI take your point that there isn't much in the way of exciting prospects that'll keep growth at the levels we've experienced so far. However, and it's funny that you picked those two examples, those companies experienced share price growth of several hundred % each. That's something JE has yet to go through and quite honestly, from a technical perspective most signs are there: a healthy, long, basing period, big volume on up weeks suggesting heavy accumulation, etc. My feeling is that once the weight of the markets comes off, it'll shoot up.Note that the philosophy I subscribe to teaches that the biggest moves occur AFTER dramatic EPS and revenue growth - and if doubling your sales in two years is not dramatic, than I don't know what is.Me personally, I'll probably be buying if the stock pierces the 600p convincingly.|
I like JE I do, but I can share the following:
Like any product or service these days, if it doe snot evolve, it eventually falls out of favour. Life, people and products are fickle and have a short life span.
Twitter is an example of this, yes it's still being used, but it did not evolve like it should have done. #Slack is a business messaging product, Twitter could have branched out into all types of immediate messaging solutions an not just consumer products. They didn't, so they are paying the price hence looking for a buyer.
Facebook is now the same as it was 5 years ago and it won't be the same in 5 years time. It will have it;s own challenges. They key for all of them is to follow googles model, buying up new opportunities and keeping the brand separate. Look at Youtube, the purchased it for 1 billion, a bargain in my view.
Just eat is at the sam crossroads strategically. If I was working there I would be doing the following:
Invest in evolving the product the offer.
Look at new opportunities, they are.
They seem they are at a stalemate, I could be wrong, or they are already maturing as a business, which is good, but investors want x growth to warrant the share price multiples. We will see, but if they do not move on, change their offering, make it slicker, better, they will be left behind.|
|Why so much sell pressure and unhappy investors on this stock? What is it about its business model that does not please you?
The only thing I'm unsure about is a rather low ROE (3.6%)... Would prefer something on the lower teens. Revenue and EPS have been growing at an impressive pace and technically the stock looks set to take off. It's pretty much a CANSLIM stock (for those that follow Bill o'Neil).
If you are basing your stories of doom on the high PE forget it. There's a reason people are willing to pay a premium for this stock and that is its results.|
|Must be FTSE100 valuation now if it holds up at this price, Next quarterly review at the end of the month
Tempted to go very big on a short but may get a small boost from this if trackers need to buy this. Then i'd back it for an instant demotion the following quarter!|
|JUST EAT (JE/ LN): FY16 Guide Up Again... Fun in the Q3 Sun...
Price Target 1,000.00p
Bloomberg LSE: JE/ LN
Our view into this print 'The JEF model needs +21% for H216 UK order growth to meet the £368m revenue guide, we remain relaxed...'. Q316 UK order growth +28% generates yet another FY16 guide upgrade, JE now look for £373m revenue and £110m adjusted EBITDA, feels conservative still...
A fairly lively debate... And while any disruptive business model can itself be disrupted and one recognises that a declining quarterly order growth dynamic can create nervousness, the volatility in the equity just in recent weeks seems a little extraordinary.
Why are we writing today? JE's Q316 order update.
What's the key number? The UK. The home market, one of the most attractive geographies for online takeaway food aggregators and at H116, £111m revenue, +44% YoY growth, 64% Group, driving £58m EBITDA, a 52% margin, +770bps YoY. The UK order growth number is not impacted my M&A and straightforward to assess, consensus +27%.
£10 target. Another upgrade WOWWWWW|
|Very good update. marginal increase in guidance.|
|Yes, but my broker doesn't agree. I think their business model would be easily transferable to a larger predator, maybe US based.|
|Hi Philo, Bid, you think someone will bid for them at some point?
I am starting to think, unless they expand into other areas, their growth may not be as good as it has been in the past.|
|They will be affected by the warmer weather leading to lower take away sales. Nevertheless the results will be very good. I believe they will be bid for, but I think I am alone in that respect.|
|A food for thought.
Its good to diversify, even Just-eat should do this, but I am wondering just how good their results will be and how far they will go with this model.
With the recent re-branding and investments, you have to wonder, still, its early days and the company will change for sure. It has too.|
|650p my target.|
|Simon French of Cenkos crushes all the news into one paragraph. DOMINO's versus JUST EAT
DOMINO’S PIZZA (DOM LN, 373p, £1.8bn, SELL) has announced a robust trading performance for Q3 2016 achieving further progress in system sales metrics, albeit against tough comparatives. The core UK business achieved 3.9% LFL growth in Q3 2016 system sales (c.f. 14.9% in Q3 2015) with YTD LFL sales growth of 8.6%. We believe our full-year 2016 estimate of 10.0% LFL UK system sales growth remains achievable pending a resilient Q4 performance. Digital sales continue to progress, increasing by 18.1% during the period with a continued migration of sales orders being captured online (over 81%) and with 64% placed via mobile/app during YTD. The store opening programme also continues apace with 21 new UK stores opened during the period (51 YTD) with management guidance now being increased from 70 new stores in 2016 to 80. The international businesses performed below our expectations during the quarter with LFL system sales increasing by 7.6% in Ireland and flat in Switzerland, leaving a bigger ask in Q4 trading to hit our full-year expectations. The new Icelandic business has made a positive contribution with 4 stores opened in the year to date while the German JV has performed in-line with management expectations. Despite the tougher H2 trading comparatives, management has today reiterated it remains confident of achieving full-year 2016 results in-line with market expectations (Cenkos estimates – adjusted pre-tax £84.4m, adjusted EPS 13.6p and dividend of 8.17p). The shares trade on a 2016 EV/EBITDA rating of 18.1x falling to 15.1x in 2018 based on forecasts. While the business continues to trade well, there remain ongoing headwinds and there is no room for error in Q4 trading. We continue to prefer the pure-play digital platform JUST EAT, that although trades on a premium (2016 EV/EBITDA of 33.0x falling to 17.9x in 2018), has enjoyed several upgrades to forecasts in the current year and has outperformed the All-Share in contrast to the underperformance observed with Domino’s. In our view this stock offers investors a much stronger profile of reward relative to valuation and we continue to recommend investors switch from Domino’s where the risk to forecasts remains on the downside.|
Price Target 1,000.00p
Bloomberg LSE: JE/ LN
Just Eat's upcoming Q316 order update, due Wednesday 2 November. The Domino's Q316 update today, we think is perhaps the most meaningful indicator of how Just Eat will do, particularly in the United Kingdom.
The UK, Just Eat's key market. The home market, one of the most attractive geographies for online takeaway food aggregators and at H116, £111m revenue, +44% YoY growth, 64% Group, driving £58m EBITDA, a 52% margin, +770bps YoY.
An alternative, more balanced view perhaps. The timing of Easter makes the actual Q1/Q2 order growth rates c.38% and 36%. The 2015 comps trend thus +50%, +50%, +50% and +44%. Weather something of a tailwind then in '15, it does feel like it was a rather good, and rather extended summer, even in Newport! In recent investor meetings, Just Eat saw consensus Q316 UK order growth expectations at c.+26%, and they appeared relaxed with that. The major rebranding and associated advertising campaign in the second half September, probably too late to drive Q3, but will drive Q4...
And not being glib, but really not sure whether it matters and should it crystallise near-term weakness in the equity, genuinely a time to build/add to positions. Buy, PT 1000p.|
|Time Out Group plc
(“Time Out” or “Group”)
Time Out associate Flypay secures £3.5m investment from JUST EAT
London (10 October, 2016) – Time Out-associate company, Flypay, the market leader in innovative, state-of-the-art technology for the hospitality industry, announced today it has secured a £3.5m investment from Just Eat, the leading marketplace for online food delivery.
Time Out, the global multi-platform media and e-commerce business with food & cultural markets, will hold a stake of 38% in Flypay after the investment from Just Eat.