Online takeaway service Just Eat (JE.) has seen order growth slow ringing worrying bells for many investors. The share price has flopped nearly 7% lower to 543.5p.
Like-for-like orders, which exclude many of the new territories the company has expanded into over the past year, increased by 36% during the year to 31 December 2016. That may appear fairly impressive yet it is a substantially below the 46% rate put up in 2015.
Orders in its home UK market slowed to 31%, versus close on 48% equivalent progress in 2015.
This shouldn't come as a huge surprise to Shares readers, we flagged the potential for disappointment in October.
This is downbeat news as far as analysts at investment bank Jefferies are concerned, not least because the company raised guidance no fewer than five times during the past 20 months.
But more positive company watchers remain. Panmure Gordon analyst Michael Stewart remains bullish on the stock, seeing still significant upside.
‘Just Eat will continue to take market share from the telephone, continue to make fill-in acquisitions that provide scale, enhance margins and boost earnings, and continue to protect and extend its market leading position’ says the analyst.
