Publication date: 1 May 2024
JustEatTakeAway is the company behind Thuisbezorgd.nl. Who doesn't know it. Numerous individuals have enjoyed the convenience of having a restaurant meal delivered right to their doorstep using the popular Thuisbezorgd.nl app.
A lot of choices, easy ordering procedures, and fast delivery have made the company a success. Especially during the period when the hospitality industry had to close due to COVID-19 measures, Thuisbezorgd had the wind in its sails. It couldn't be beat at the time.
Unfortunately, as we often see, decisions are made during such a period that in hindsight turn out to have been opportunistic. In particular, the acquisition of U.S. industry peer Grubhub played tricks on the company. Despite the monumental €6.4 billion acquisition that propelled Just Eat TakeAway to the forefront of the industry, the company faced the harsh reality of having to write off the acquisition at a later stage.
Thus, the merger of Take Away and Just Eat has experienced high peaks and deep valleys in recent years. Amid the current calm, anticipation brews as we eagerly await what exciting developments may unfold for this remarkable stock soon.
The logical takeover candidate
In the battle to become the market leader in the growing and lucrative meal delivery industry, Just Eat TakeAway has been a topic of conversation for ages. Main competitor Uber Eats would like to make its move by acquiring the company now that its share price has plummeted dozens of percent. During this time, we have witnessed a transformation in the industry, with numerous new players entering the market through strategic acquisitions and mergers.
The Just Eat TakeAway share price has been at a low level for two years but takeover rumors have also subsided during that time. Nevertheless, a takeover remains a logical step and we continue to consider it as a factor.
Share price development of Just Eat TakeAway: analysis and trends
As mentioned and probably known, the price of this stock has experienced a lot. Therefore, Let's delve into the past and anticipate the future through the lens of three insightful charts.
First, look back to the big picture with a progression over the past five years to understand what the stock price has experienced.
You can see the pink circled price movement from €59 to €110, which was the business success during the COVID period. Then you can see the huge drop mainly because of write-offs on the big acquisitions and in addition, the number of orders dropped so the company continued to report losses.
You can also see the vertical blue line from two years ago. To analyze the expectation of the stock price, first, we just have to zoom in on the course of the last two years and leave behind the price violence before that.
Above is the course of the stock price since May 2022. Technically speaking, it appears mainly that the stock is a plaything for speculators. High volatility within a "narrow" range. Unclear price pattern. This is often a precursor to a large price movement. To better analyze which major movement we should expect, we also zoom in on the course over the past six months.
Here you can see the course of the price since November 2023. This technical pattern combined with the pattern on the two-year timeframe gives a higher probability of a short-term decline to €12.50 with a possible short run to €11. From that zone the price is ready for the big move which in all likelihood will be up to €15.- but we should certainly not rule out a jump to €25.-.
So, after two years of nervously moving slightly sideways at low levels, it is time for action. Could a potential acquisition be the catalyst for this anticipated action?
If we look at the opinions of the analysts of the major banks, the majority give a buy recommendation with an average target price of € 21.50.
Conclusion
The time for action is coming.
The price of Just Eat TakeAway shares may seek the bottom of the trading range in the short term and could therefore fall to €12.50 - €11.
In the larger time frame, both the technical and the banks' fundamental analysis give a positive outlook with a price target of € 25 and € 21.50, respectively.
July 31, Just Eat TakeAway will release figures and its outlook. Possibly that will give the go-ahead for the ride up or there will be more news about an acquisition. Until then, we will have to wait and, for now, the price of € 12.50 seems like a good buying opportunity.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
