A UK company listed on the DJStoxx600 has the most 12-month upside potential in the index. It is trading at lows but is liked by most analysts, who predict a new rally for it in the medium term.
Stock markets have recovered ground in recent days but are still in the red for the year. Europe's main indices are down between 1% and 13% since the start of January. The exception is the British Ftse100, which is up 1.9% this year.
In the case of the DStoxx600, which brings together the 600 companies with the largest capitalization in Europe, its drop is 11% in 2022.
Among the companies listed on this index, there is a true investment gem that is undervalued according to analysts. It is a hidden treasure that is listed in an area of historical lows, but that practically all the firms that cover their price on the floor like.
They believe that it will take flight and foresee strong rises in the medium term. On average, the consensus of experts consulted by Bloomberg gives it a 250% upside potential over twelve months.
This company is Just Eat, which is listed on the London Stock Exchange and is one of the constituents of the FTSE100.
The food delivery company, which has its headquarters in the United Kingdom, is not going through its best moment on the stock market. Its shares are down 63% this year and it is close to record lows, around 18 pounds. His punishment comes from behind, since last year he subtracted 47.54% in the park.
In the previous four years, however, he had made strong profits, of 293%. His titles thus went from trading from 23.5 pounds to 94.40 pounds in the period.
The recent punishment is justified with the normalization of society after restrictions on the population have been lifted. With this, the glorious years that all home food companies have lived in the middle of Covid are over.
The 2020 lockdowns created the perfect recipe for the population to comply with the company's logo, "only takeout", and consumer spending on all Just Eat services increased by 51% this year. "The Covid crisis benefited the entire sector," explains Andrew Gwynn, an analyst at Exane BNP Paribas.
The rise in recent inflation has not helped it either, as it means that families are relaxing consumption to deal with the situation.
Despite the adverse scenario, experts are optimistic about Just Eat: 24 of the 25 firms that follow it believe that it is necessary to have the value in the portfolio. Nineteen of them advise buying their titles right now, according to the consensus of analysts consulted by Bloomberg.
Headquartered in the UK, Just Eat operates in 13 countries across Europe, Asia, Oceania and the Americas. The platform has premises outside the restaurants to organize and coordinate distribution orders and home delivery.
Robert Gregory of Edge by Ascential recalls that Just Eat currently dominates the food delivery market in both the UK and Europe. In addition, a few months ago, "it has launched multiple initiatives aimed at serving customers who work from home."
It also created the Takeaway Pay Card, which allows companies to offer their employees meal benefit plans, allowing them to order from a wide range of Just Eat Takeaway.com restaurant partners. All this could help sustain their figures, according to experts.
The company presented its results for the past year on March 2, which left a good taste in the mouths of analysts. Despite the adversities, the company achieved revenues of 5.3 billion euros, which is 33% more than in 2020.
Orders also grew during 2021, to 1,086 million. 33% more than the previous year when they were 816 million.
On the other hand, Just Eat entered into losses, of 350 million euros, due to the investments made in the different markets in which it operates to gain market share, especially in the United Kingdom and Ireland.
Its priority for 2022, according to its CEO, Jitse Groen, in a conference with investors, is to continue growing and return to the path of profitability.
"We have a lot of control over EBITDA (gross operating profit), we have chosen to invest in the UK a good amount of money to increase our position in the market," said Groen.
The director added that they are going to be very cautious, "if we have to invest more money in the United Kingdom, we will do it. I do not want to advance anything about the future. It is early in the year to make a statement about where we are going to end up," he said.
However, experts applaud the company's ability to adapt to the population's return to normality and believe that it will take flight on the parquet. On average, the consensus of analysts consulted by Bloomberg gives it an upside potential of 250%, since it considers that it can rise to 63.14 pounds.