Will Just Eat continue falling, or will it rise again back to recent 889p Summer highs?

• Just Eat shares have fallen close to 15% in the past month to trade 575p (at time of writing).
• Shares -33.6% from 2018 highs; +3.6% from 2018 lows; -26.4% year-to-date.
• Recent share price range: Oct lows 562p; late Sept highs 702p.
• Online food delivery platform has been downgraded by Peel Hunt from Buy to Sell.
• The brokerage also lowered the target price to 520p (from 950p), triggering the sell-off.
• Can the stock regain recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News

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Trading Just Eat – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 889p. You decide to buy exposure to £10,000 worth of Just Eat using a CFD, at the current price of 575p. To do this, you need £2,000.

Let’s assume Just Eat recovers back to 889p (+54.6%). Your profit would be £5,460, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Just Eat falls 10% and hits your stop-loss. Your loss would be £1000.

This is provided for information purposes only. It should not be taken as a recommendation.