Market Report: JPMorgan puts Just Eat top of its European online stocks

Analysts at JPMorgan suggest the upcoming first-half results could show a 42 per cent increase in orders year on yea

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Just Eat might not have a technology patent to its name but that has not stopped JPMorgan sticking the takeaway delivery firm at the top of its list of European online stocks.

The heavyweight broker slapped an overweight (no pun intended) recommendation on Just Eat, up 20.7p at 423p, as it tipped the shares to hit 550p by December. It even has a “blue sky scenario” of 1,200p per share, which would value the company at more than £8bn.

Analysts at JPMorgan suggest the upcoming first-half results could show a 42 per cent increase in orders year on year. They add that more M&A, following the £445m deal earlier this year to buy Australia’s Menulog, is “likely to be well received by the market”.

Just Eat already takes a  10 per cent cut but could start to charge more commission in the UK before the 2018 financial year, JPMorgan reckons. An increase of just 1 percentage point would boost earnings by 14 per cent next year, it estimates.

News of a Greek accord sent the FTSE 100 up 64.57 points to 6,737.95. Economists, though, are warning the end of the saga is a long way off yet.

Specialty chemicals group Alent, up 149.3p at 487p, agreed to a takeover by US rival MacDermid, a subsidiary of Platform Specialty Products. The 503p-a-share deal values Alent, created when the engineer Cookson split into two in 2012, at £1.35bn. Cevian Capital, one of Europe’s biggest activist investors, is Alent’s largest shareholder with 21.9 per cent and has already given the deal the thumbs-up.

Loans provider International Personal Finance, spun out of Provident Financial in 2007, dropped 118.8p to 352.6p, after warning potential changes to Polish consumer finance laws could have an “adverse financial impact”.

Over on AIM, Central Asia-focused oil explorer Tethys Petroleum leapt 1.88p to 9.63p following a bid approach from Nostrum Oil & Gas. The offer trumps a bid and interim financing proposed by the powerful Assaubayev family from Kazakhstan, who have just invested £8.98m in Max Petroleum, giving them a 63.8 per cent stake in the AIM-listed oil minnow, whose shares have been suspended since February.

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