Jefferies International gave a boost to Just Eat PLC (LON:JET) shares on Tuesday, upgrading its rating for the merged food delivery app provider to ‘buy’ from ‘hold’.

The US broker has an 8,000p target price on the FTSE 100-listed firm’s stock, which in late afternoon trading were changing hands at 6,355p each, up 7.1% on Monday’s close.

READ: Just Eat and other delivery firms could see ‘short term demand uptick’ from coronavirus, says UBS

Just Eat’s £6.3bn merger with rival completed at the start of February after the Dutch firm won a bidding war with Prosus, an investment group backed by South African e-commerce giant Naspers.

In a note to clients, Jefferies analysts said: “The roots of our more constructive view on the equity can be found in the elegant and opportunistic acquisition of Just Eat.”

“We now see four catalysts for a re-rating from 0.7x back to the equity’s previous 1.4x high: a playbook in the UK that will drive consolidation down to a duopoly; and potential divestments of iFood/Australia/Canada that could leave the RumpCo on only 0.4x EV / 2020 GMV,” they added.