Market Analysis: Taylor Wimpey & Just Eat Takeaway

Taylor Wimpey: Sales activity should increase and the peak of build cost inflation has passed in 2024.
Just Eat Takeaway: increasing transaction volumes in the grocery sector is crucial for boosting average basket size and enhancing profitability; The impending UK regulation on the gig economy poses the most significant risk and could lead to substantial cost increases.

Yanmei Tang, Analyst at Third Bridge comments on Taylor Wimpey, informed by the insights from industry experts:

“Our experts believe that Q1 2024 will be busier than Q4 2023 for Taylor Wimpey and the UK housing market in general. It's anticipated that interest rates will begin to decrease, leading to increased sales activity.

“The peak of build cost inflation has likely passed, along with announced headline cost savings, potentially offering Taylor Wimpey some margin relief in 2024.

“The potential introduction of a 99% mortgage is a significant boom for the housing market, particularly since many of Taylor Wimpey’s buyers are first-time buyers.

“Despite a challenging market, Taylor Wimpey managed to raise average selling prices last year, showcasing their competitive edge in quality control and customer service.”

Albie Amankona, Analyst at Third Bridge remarks on Just Eat Takeaway.

“Our experts say increasing transaction volumes in the grocery sector is crucial for boosting average basket size and enhancing profitability. Margins in food delivery are extremely tight.

“Securing exclusive partnerships with desirable brands and providing incentives like discounted delivery fees are effective strategies for attracting users from competitors and re-engaging occasional users.

"The impending UK regulation on the gig economy poses the most significant risk and could lead to substantial cost increases. However, Just Eat is in a favourable position due to its existing employed driver fleet.

“Just Eat currently holds over 50% of the UK food delivery market share, but there's still opportunity to expand its portfolio of restaurants by 40%.”