KBC Securities expects Just Eat Takeaway to become FCF positive, starts with 'buy'

Just Eat Takeaway.com NV

11/03/2024 12:21

** KBC Securities says Just Eat Takeaway  TKWY.AS  is "ready
to spice things up, by adding free cash flow (FCF) to the menu,"
initiating its coverage with a "buy" rating
    ** "Following the post-pandemic normalisation, we have seen
a rapid recovery in margins, driven by efficiency gains and cost
savings," says the broker, adding it expects this trend to
continue into 2024, with the company becoming FCF positive
    ** The broker says Just Eat Takeaway has a gross cash
position of 1.7 bln euros and net debt position of 636 mln euros
at the end of 2023, adding the company's "strong balance sheet
leaves room for further share buybacks"
    ** KBC Securities expects the group's revenue and gross
transaction value (GTV) to grow at a CAGR of 5.1% and 4.2%,
respectively, by 2027
    ** The broker set its PT for at 18.00 euros, and says a
successful GrubHub sale could be a big trigger for the stock
    ** Among 19 analysts covering the stock, 10 rate it "strong
buy"" or "buy", six rate it "hold" and three rate it "sell"

 (Reporting by Dimitri Rhodes)
 ((Dimitri.Rhodes@thomsonreuters.com))