FRANKFURT (dpa-AFX Broker) - Shares of Delivery Hero approached their annual low of 16.715 euros on Wednesday, dropping by as much as 8.5 percent. Analyst Xavier Le Mené from Bank of America (BofA) downgraded the food delivery company's stock to "Underperform" - although his price target of 19 euros has already been significantly undercut.
Le Mené does not expect any major valuation impulses from the strategic review in the near term. A potential asset sale would take time, and purchasing the stake from major shareholder Prosus would likely be value-dilutive. Operationally, while growth continues, margins remain disappointing. Profitability must take priority, according to Le Mené. Overall, he sees an unattractive risk-reward profile.
Since their annual high of 27.26 euros, the shares have lost over 38 percent of their value and are down about a quarter in 2024./ag/stk
