​​Deliveroo and Just Eat Takeaway earnings scheduled to arrive this week

​​​Can Just Eat Takeaway and Deliveroo’s market updates improve their share performance?

​​Just Eat Takeaway, the food delivery giant, is set to provide a market update on October 18th, marking its first major update since reporting a return to profit in the first half of the year. The company's stock has experienced a significant decline of over 40% this year, reaching a new low for 2023 in recent weeks. While cost-cutting measures contributed to the stronger performance in the first half, it remains uncertain whether the group can sustain these efficiencies going forward.

​On October 19th, Deliveroo will present its third quarter (Q3) trading update, which will be the company's first update since raising its profit guidance during its half-year results. Deliveroo's shares have surged by over 60% in the past year, as the food delivery company has outperformed its competitors in the UK and Ireland, steadily increasing its profits. In the interim update released in August, the company projected full-year underlying profits (EBITDA) between £60 million and £80 million, surpassing the previously estimated range of £20 million to £50 million. Deliveroo achieved positive pre-tax earnings earlier than expected in the first half of the year.

​The key focus of Deliveroo's Q3 update will be to determine whether the company has maintained its positive trajectory throughout the Q3, despite facing challenges from high food inflation that may have impacted order volumes. Additionally, investors will be keen to learn about any indications of expansion into the grocery delivery market, an area that Deliveroo has already begun to explore.

​Analyst ratings for Just Eat Takeaway and Deliveroo

​Just Eat Takeaway

Refinitiv data shows a consensus analyst rating of between ‘buy’ and ‘hold’ for Just Eat Takeaway – 2 strong buy, 7 buy, 9 hold and 1 sell - with the median of estimates suggesting a long-term price target of €22.00 for the share, roughly 81% higher than the current price (as of 17 October 2023).

​IG sentiment data shows that 89% of clients with open positions on the share (as of 17 October 2023) expect the price to rise over the near term, while 11% of clients expect the price to fall. This week 70% of IG’s clients bought the share and this month 54% sold it.

​Deliveroo

Refinitiv data shows a consensus analyst rating of ‘buy’ for Deliveroo – 4 strong buy, 3 buy, 5 hold and 1 sell - with the median of estimates suggesting a long-term price target of 142 pence for the share, roughly 15% higher than the current price (as of 17 October 2023).

​IG sentiment data shows that 98% of clients with open positions on the share (as of 17 October 2023) expect the price to rise over the near term, while 2% of clients expect the price to fall. This week 57% of IG’s clients sold the share and this month 64%.

​Technical Analysis on Just Eat Takeaway and Deliveroo shares

​Just Eat Takeaway and Deliveroo’s share prices, which at the beginning of the year traded at around similar levels, began to greatly diverge at the beginning of February with the Deliveroo share price greatly outperforming and having risen close to 40% year-to-date whereas that of its competitor dropped by over 43% year-to-date.

​Just Eat Takeaway and Deliveroo Daily Comparison Line Chart

​Deliveroo’s share price last week came close to reaching its 133 pence early August peak before retracing lower amid global risk-off sentiment to do with heightened Middle East tensions. While the share price remains above its late-September low at 107.4p, the medium-term uptrend will remain intact, though.

​Deliveroo Daily Candlestick Chart

​A rise and daily chart close above the April and August peaks at 133p would put the 150p region on the cards.

​The Just Eat Takeaway share price is showing the exact opposite of its competitor, namely that it is desperately trying to hold above its early-October all-time record low at €10.53 with the psychological €10.00 mark looming large in investors’ minds. As such the region around this level may offer interim support.

​Just Eat Takeaway Daily Candlestick Chart

​While the Just Eat Takeaway share price remains below its May and July highs at €17.360 to €17.658, the long-term trend remains bearish.

​For the medium-term downtrend to be questioned a bullish reversal would need to take the Just Eat Takeaway share price above its late August-to-September highs at €13.420 to €17.524. On the way there a stumbling block is represented by the July-to-October downtrend line, the 55-day simple moving average (SMA) and last week’s high at €12.664 to €12.894.

​Minor support can be spotted at the early September €11.432 low ahead of the early October all-time record low at €10.53.