Delivery Hero: UBS upgrades stock to buy
(CercleFinance.com) - UBS has upgraded its neutral rating on the online food delivery group, Delivery Hero, to buy.
UBS analysts believe that it is an up and coming sector leader, raising their 12-month target price for the share from 39 euros to 45 euros (+15.4%).
UBS first distinguishes Delivery Hero for its strong growth, which is expected to reach 35% p.a. by 2020. The group also has a diversified profile, because of its presence in over 40 countries, particularly in the Middle East/North Africa region (MENA), where it is "clearly" a market leader, analysts say. Note that the MENA region has a particularly attractive food retail market, UBS says, citing the popularity of mobile apps offering such services.
In addition, Delivery Hero could either exit markets in which its position is relatively weak (Germany, South Korea and some Latin American countries are cited), or make acquisitions to beef up its presence there and hence boost the value of the subsidiaries concerned.
Finally, UBS considers that the market seems to be placing no value on the German group's free cash of approximately 900 million euros.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
UBS analysts believe that it is an up and coming sector leader, raising their 12-month target price for the share from 39 euros to 45 euros (+15.4%).
UBS first distinguishes Delivery Hero for its strong growth, which is expected to reach 35% p.a. by 2020. The group also has a diversified profile, because of its presence in over 40 countries, particularly in the Middle East/North Africa region (MENA), where it is "clearly" a market leader, analysts say. Note that the MENA region has a particularly attractive food retail market, UBS says, citing the popularity of mobile apps offering such services.
In addition, Delivery Hero could either exit markets in which its position is relatively weak (Germany, South Korea and some Latin American countries are cited), or make acquisitions to beef up its presence there and hence boost the value of the subsidiaries concerned.
Finally, UBS considers that the market seems to be placing no value on the German group's free cash of approximately 900 million euros.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.