UK Share Prices Watch: Just Eat Sinks

Low-cost airline easyJet (LON:EZJ) has expectedly been one of today’s UK share prices to watch this Friday, after updating investors on its interim performance. Just Eat (LON:JE) meanwhile has tumbled to the bottom of the blue-chip leaderboard after Sky News reported that Amazon was about to make an investment in rival Deliveroo.

easyJet flies higher, Just Eat tumbles

easyJet flies higher after results 

easyJet is rallying even as it disclosed this morning that its headline loss before tax had widened to £275 million in the first half of its financial year, compared with an £18-million loss in the prior-year period. The airline, however, reassured investors that  its headline profit  before tax expectations for the financial year 2019 remained unchanged and in line with expectations.

“In line results and an unchanged FY profit outlook mask more concerning trends,” Liberum commented, as quoted by Proactive Investors, adding that the airline’s first-half showed a ‘significant deterioration’ against a tough comparative, as expected, and weaker guidance on unit revenue was balanced against an improved non-fuel cost outlook. The broker, however, expects “attention to focus on the weaker revenue and the cut to 2020E capacity growth points to caution beyond the short term”. easyJet’s shares are currently trading about 3.70 percent higher, compared with about a 0.4-percent fall in the Footsie.

Just Eat meanwhile is in the doldrums as it emerged that US e-commerce giant was set to invest in rival Deliveroo.

Proactive Investors quoted Liberum as commenting that Amazon’s investment in Deliveroo would raise concerns over the FTSE 100 group’s business model. The broker, however, reaffirmed its ‘buy’ rating and price target of 1,360p on the stock, saying these concerns were ‘overdone’ as despite Amazon’s backing for Deliveroo, Just Eat’s dominant market position would be “incredibly difficult to overcome, especially given its strength in smaller towns”.

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Disclosure: The author doesn’t have positions in these stocks currently, but may initiate positions if the stock prices slide a bit lower. None of the content in this article should be ...

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