Just Eat is the biggest faller in the FTSE 250 after a cautious broker note and concerns about some of its restaurant listings.
The online takeaway business, which recently bought Australian firm Menulog for £445m part funded by a share placing at 425p each, is down 22.1p at 400.1p as Morgan Stanley began coverage with an equalweight rating. The bank put a 450p price target on the company and said:
Just Eat operates in a very attractive industry with supernormal growth, high and improving margins and great cash conversion. However, the shares are pricing in perfect execution, we see isolated competitive threats and risk from an evolution in the industry towards delivery.
Meanwhile the Irish Times has reported that a number of restaurants used different names on the website, perhaps to avoid negative reviews. Just Eat said the accounts had been suspended, adding:
The duplication of takeaway restaurant partners on the Just Eat website is not a practice we support and we are grateful that [The Irish Times] has brought it to our attention.
