Yahoo Finance Deliveroo falls after JPMorgan analysts slash rating to underweight
By Scott Kanowsky
Investing.com -- Shares in Deliveroo Holdings PLC (LON:ROO) fell on Wednesday after analysts at JPMorgan cut their rating of the food delivery service, citing data suggesting potentially weak returns in the U.K. in the final three months of 2022.
In a note, the analysts said figures from Oxford DataPlan showed that a small boost for food deliveries during the FIFA World Cup football tournament in November and December was not enough to offset a broader decline in customer spending due to recent cost-of-living pressures.
They added that Deliveroo's order growth in the U.K. and Ireland is expected to turn negative in the fourth quarter, while the London-based company will also see ongoing weakness in its international markets.
The JPMorgan analysts slashed their rating for Deliveroo to underweight from neutral and lowered their price target to 91p from 94p.
Deliveroo is due to post its latest trading update on January 19.
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Deliveroo falls after JPMorgan analysts slash rating to underweight
