TRADER TIPS: City insiders say buy takeaway delivery app Just Eat but sell education publisher Pearson

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Berenberg has a ‘buy’ recommendation for takeaway delivery app Just Eat

BUY THIS: Just Eat

Berenberg has a ‘buy’ recommendation for takeaway delivery app Just Eat.

The broker said that although Just Eat is losing money, future profitability should be boosted by quicker deliveries and cross-selling.

Top investor Old Mutual recently sold its Just Eat position because of competition fears, but Berenberg said this was an ‘over-reaction’ and that the firm is growing faster than expected.

SELL THIS: Pearson 

Liberum believes it is time to sell Pearson.

The education publisher has attempted to reassure investors that it will be rescued by its digital operations, but Liberum said another poor year in the US market will put further strain on the struggling company.

Liberum said students are unwilling to pay the prices offered by Pearson’s print business, while its online operations face huge levels of competition.