'Hungry for outperformance': JPM favours food delivery in European internet space

Just Eat Takeaway.com NV

05/12/2024 13:19

** J.P.Morgan prefers food delivery over classifieds among European internet
stocks going into 2025
    ** It says food delivery benefits from earnings momentum and valuation
discounts vs peer sectors, along with improved fundamentals
    ** Online classifieds, a safe haven until recently, meanwhile offer a limited
earnings upside and lack catalysts in the next 12 months, it says
    ** It favours high profitability and attractive valuations in the
e-commerce/other space, and expects macro and geopolitical uncertainty keep
weighing on advertising
    ** JPM sees limited impact from tariffs and potential de-globalisation effects
as these companies operate locally
    ** It also expects M&A activity to gain momentum in the space
    ** JPM downgrades Schibsted  SCHA.OL  to "neutral", saying its repositioning
towards a pure-play marketplace is priced in
    ** It cuts Stroeer  SAXG.DE  to "neutral" as weak macro environment in Germany
remains an overhang
    ** It upgrades Deliveroo  ROO.L  to "overweight" from "neutral" on the back of
its bullish sector view
    
FOOD DELIVERY:
 COMPANY                        RATING        OLD RATING   PT          OLD PT
 Deliveroo                      overweight    neutral      GBp 192     GBp 170
 Delivery Hero  DHER.DE         overweight    -            EUR 55      EUR 42
 Just Eat Takeaway  TKWY.AS     overweight    -            GBp 1,832   GBp 1,602
 
CLASSIFIEDS:
 COMPANY                        RATING        OLD RATING   PT          OLD PT
 Auction Technology  ATG.L      overweight    -            GBp 695     GBp 555
 Auto1  AG1G.DE                 overweight    -            EUR 18.8    EUR 17.1
 Auto Trader  AUTOA.L           underweight   -            GBp 746     GBp 688
 Rightmove  RMV.L               underweight   -            GBp 585     GBp 555
 Schibsted                      neutral       overweight   NOK 417     NOK 422
 Scout24  G24n.DE               overweight    -            EUR 105     EUR 92
      
E-COMMERCE/OTHER:
 COMPANY                        RATING        PT          OLD PT
 CTS Eventim  EVDG.DE           overweight    EUR 112     EUR 104
 HelloFresh  HFGG.DE            overweight    EUR 16      EUR 14
 Ocado  OCDO.L                  neutral       GBp 380     -
 THG  THG.L                     underweight   GBp 49      -
 Trainline  TRNT.L              overweight    GBp 500     GBp 438
    
OUTDOOR ADVERTISING:
 COMPANY                        RATING         OLD RATING   PT          OLD PT
 JCDecaux  JCDX.PA              underweight    -            EUR 13      EUR 15.9
 Stroeer                        neutral        overweight   EUR 57      EUR 79
 
 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))