Just Eat shares fell 5% on Thursday after the group was dropped from the FTSE 100.
The reshuffle was announced on Wednesday’s close, where the food delivery company was relegated following a torrid six months with profit warnings and a drop in share price.
The share price in the group since July has fallen from 883.4p to a November-low of 533.8p.
Analysts have cut their forecasts from by around 28% this year due to heavy investment carried out by Just Eat.
Since falling off the FTSE 100, Barclays (LON: BARC) has also cut its price target.
“We see limited macro risk for Just Eat. In our view, while some customer might forego ordering takeaway food to save costs, others might trade down from higher segments to Just Eat for the same reason,” said Barclays.
“The underlying marketplace business is performing well and earnings upside/downside into the coming years will largely be driven by discretionary investments into marketing and logistics.”
“To reflect updated guidance, and as we expect those investments to continue, we reduce our earnings estimates for 19/20 by [around] 16%.”
The food delivery company, which is now part of the FTSE 250, was replaced by engineering firm Spirax-Sarco (LON: SPX).
With no surprise to many, the Royal Mail (LON: RMG) was also relegated from the FTSE 100 after its share price more than halved since its peak in May.
Replacing the Royal Mail was the insurance company Hiscox (LON: HSX). The share price has more than doubled in the past five years and the group was won the insurance company of the year at the City A.M. awards.
Shares in Just Eat (LON: JE) are currently trading -5.13% at 536,00 (1607GMT).