SHARES IN FOCUS 2: Exiting the German market drives Delivery Hero up
Flag of the Federal Republic of Germany. pixabay.com
(new: share prices updated and analyst comment in the 5th paragraph)
FRANKFURT / AMSTERDAM (dpa-AFX) – After heavy price losses in recent weeks, the shares of Delivery Hero are
Foodpanda Germany will end its activities in six German cities and will only have one development department in Berlin. It was only in May that the Berliners announced that they would again offer a delivery service in German cities. The move now allows funds to be shifted to attractive growth markets and businesses, it said. The Foodpanda business in Japan is also expected to be sold in the first quarter of 2022.
A trader pointed out that competition on the German market had recently become even tougher. For example, the entry of Doordash rescues
Investors also reacted with a view of Just Eat Takeaway, delighted at Delivery Hero’s move
Analyst Giles Thorne from the investment bank Jefferies suspects that the high cost of equity could have caused Delivery Hero to exit Germany. Because these could hold the company back “in the final round of the transformation of the sector with mergers and acquisitions”. The main beneficiary of the move is the opponent Just Eat Takeaway.
Delivery Hero’s price gains are also likely to be a counter-reaction to the recent bitter losses. After an interim high of the share in mid-November at 131.50 euros, it went down by up to a third. The papers were only able to stabilize the day before. At a good 99 euros, there is still a long way to go to meet the price targets of several analysts: Investment houses such as Deutsche Bank (Deutsche Bank share), Barclays, Credit Suisse and Goldman Sachs (Goldman Sachs share) have targets of 140 to almost 200 euros written on the flags./bek/he
HSBC Trinkaus & Burkhardt AG
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