Some of the froth was blown off the shares with an update in June where the delivery giant predicted a slowdown in demand for comfort food as COVID-19 restrictions eased and the weather improved.
Pubs, bars and restaurants reopening were also expected to reverse some of the lockdown boost enjoyed by the online business over the past year.
“With the shares down 34% since the peak in September 2020, we think near-term risks are priced in,” said the US heavyweight.
“Given the compelling TAM (total available market), and the share pricing in only 388p for new contracts, this represents an attractive entry point.”
Morgan Stanley raised its investment rating to ‘overweight’ from ‘equal’ and its price target to 2,825p from 2,813p.
Shares rose 4.2% to 1,960.5p.