On Tuesday, Jefferies analyst Giles Thorne adjusted the firm’s stance on Just Eat Takeaway.com NV (TKWY:NA) (OTC: TKAYF), downgrading the stock rating from "Buy" to "Hold" and simultaneously reducing the price target to €20.30 from the previous €22.50. This revision followed the announcement that Prosus (OTC:PROSF) NV has made a recommended takeover offer for Just Eat Takeaway.com (JET). The stock has shown remarkable momentum, surging nearly 47% in the past week and currently trading at $19.81, near its 52-week high of $19.95. InvestingPro analysis indicates the stock is currently fairly valued based on its proprietary Fair Value model.
According to Thorne, Prosus proposed to acquire JET at €20.30 per share, which values the company at approximately €4.1 billion. This offer price represents a significant 49% premium over JET’s three-month volume-weighted average price (VWAP). The Just Eat Takeaway.com board, including CEO Jitse Groen, has unanimously recommended the offer to the shareholders, stating it serves the best interest of the company and its stakeholders. InvestingPro data shows the company maintains a GOOD financial health score, with liquid assets exceeding short-term obligations and moderate debt levels.
In response to the takeover bid, JET’s board has confirmed that the company will retain its current brand and identity. Moreover, Prosus and Just Eat Takeaway.com have come to an agreement on several non-financial covenants. These covenants cover various aspects including strategy, growth, environmental, social, and corporate governance (ESG), as well as organizational structure and governance, and will remain in effect for two years following the completion of the offer. Investors should note that JET is scheduled to report earnings on February 26, which could provide additional insights into the deal’s implications. Get access to 13 more exclusive InvestingPro Tips and comprehensive financial metrics to make informed decisions about this takeover opportunity.
The takeover bid by Prosus is a notable event for Just Eat Takeaway.com, as it could potentially lead to significant changes in the company’s operations and market position. However, the deal has been structured to ensure that JET’s brand and strategic vision continue to be preserved post-acquisition.
Investors and stakeholders of Just Eat Takeaway.com are now faced with the decision to accept the offer from Prosus, which has been positioned as advantageous by the JET board. The downgraded rating and adjusted price target from Jefferies reflect the latest developments and the proposed terms of the acquisition.
In other recent news, Just Eat Takeaway has been the subject of renewed analyst coverage following its recent sale of Grubhub. Jefferies analyst Giles Thorne resumed coverage with a Buy rating and a price target of €22.50, noting a significant decrease in revenue and Adjusted EBITDA estimates due to the divestiture. The sale has led to revised financial forecasts, including a reduction in share-based compensation and lease payments. Jefferies also adjusted its revenue and Adjusted EBITDA expectations for Northern Europe, while upgrading the UK and Ireland’s EBITDA margins for fiscal year 2025. Meanwhile, BofA Securities also reinstated coverage on Just Eat Takeaway with a Buy rating, setting a price target of €16.00. The firm views the Grubhub sale as a positive step that reduces risk and allows the company to focus on its Northern European operations. BofA Securities highlights Just Eat Takeaway’s strong market position in Northern Europe and the UK, citing growth in logistics as a potential driver for improved margins. These developments indicate analyst confidence in Just Eat Takeaway’s strategic direction and financial outlook.
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