Leading sector analyst Michael Stewart has said that he believes the right people are in place at Just Eat to “drive significant profitability improvements going forward”.

He said: “The company has disposed of its non-core assets and is now fully focused on building bigger and better businesses in its remaining territories. Management has demonstrated successful strategy execution and discipline to date.

“Even though Just Eat has operated in the UK for over 10 years, the company is far from reaching the maturity phase. With the telephone still accounting for over 55% of orders, we are confident that the company can drive channel shift and take significantly more market share.

“We therefore retain our Buy recommendation but increase our price target from 641p to 734p.”

The market leader in twelve territories, Stewart said that Just Eat continues to extend its market leading positions and consolidate geographies.

Stewart said: “This provides larger volume and scale for consumers and generates material synergies and higher sustainable margins. The group generated an underlying EBITDA margin of c34% in 1H2016, this is almost 20pp lighter than what is been generated in the UK.

“The differential between the underlying EBITDA margin on a group level and established territories highlights the level of margin accretion Just Eat could benefit from as it continues to invest in, and scale, other developing markets.

“Our analysis shows that the company’s addressable overseas market is worth c£16.4bn; this is almost three times the size of UK market. At scale we believe that Just Eat could generate c£815m of revenue from these markets which is over six times more than they currently do.

“Our sum of the parts analysis shows the fundamental value of the business to be 734p, a c35% premium to the prevailing market price. This methodology is underpinned by a discounted cash flow model which shows the share to be worth 759p. The shares also appear undervalued on a relative basis with the stock trading at a discount to both Rightmove and Auto Trader on a 3YF EV/EBITDA multiple despite generating over three times the rate of sales growth and with far greater margin potential.”