UK Share Prices Watch: Just Eat Sinks

City A.M. quoted Peel Hunt commenting that that the Amazon investment in Deliveroo, coupled with Uber’s initial public offering (IPO) last week, increased the pressure on Just Eat.

“After Uber’s IPO last week that raised $8.1 billion and now Amazon’s investment today – both in aid of the more expensive delivery side of the takeaway market – these two FAANG(U)s will put more pressure on Just Eat which has only recently started out on that journey,” the broker reckons. Shares in Just Eat are changing hands more than seven percent in early afternoon trade.

The Sage Group (LON:SGE) is underperforming the broader market as the software company announced that its organic operating profit had fallen in the six months ended March 31. The group, however, said that its full-year outlook showed “continuing confidence in recurring revenue growth in the remainder of FY19”. Sage’s stock is about 1.3 percent worse off intraday.

Investors are also reacting negatively to Hikma Pharmaceuticals’ (LON:HIK) trading update, with the company noting that it expected increased competition on its marketed portfolio, which the generics drugmaker expects to partially offset with market share gains and new product launches. The company, however, reaffirmed its full-year guidance. Hikma’s shares are more than three percent lower.

In mid-caps, shares in Thomas Cook (LON:TCG) are in free fall again as Citi turned bearish on the troubled tour operator which revealed a wider loss before tax yesterday and warned over second-half earnings. Sharecast quoted the broker as commenting that the group’s FY18 net debt of around £750 million implied ‘zero equity value’.

“We fear that news of the £1bn write-down and the ‘material uncertainties’ comment from the auditors will unsettle consumers and drive further weakness in bookings,” the broker elaborated. Thomas Cook’s shares are trading more than 35 percent lower today.

View single page >> |

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.