Analysts Lower Price Target for Delivery Hero SE (ETR:DHER) Following Recent Report

Delivery Hero's Q1 Results and Analyst Reactions

• Stock Performance: Following the release of its first-quarter results, Delivery Hero SE's shares fell by 6.2%, closing at €22.68. This decline reflects investor concerns regarding the company's financial outlook.
• Revenue Forecasts: Analysts are now predicting revenues of €14.2 billion for Delivery Hero in 2025, representing a 5.9% increase from the previous year. This is a slight upward revision from earlier estimates of €14.0 billion.
• Loss Projections: Expected losses per share have increased to €1.75, a 7.6% rise from previous forecasts of €1.57. This indicates a growing concern among analysts about the company's profitability.

Analyst Sentiment and Price Targets

• Consensus Price Target: The consensus price target for Delivery Hero has decreased by 6.4% to €34.10 per share, reflecting analysts' worries about increasing losses.
• Range of Estimates: There is a significant disparity in analyst valuations, with the most optimistic target at €52.00 and the most pessimistic at €21.00, indicating a wide range of potential outcomes for the company.

Industry Context and Growth Expectations

• Revenue Growth Comparison: Delivery Hero's anticipated revenue growth of 8.0% annually through 2025 is a notable slowdown compared to its historical growth rate of 30% over the past five years. This growth rate is slightly below the industry average of 8.5%.
• Long-Term Outlook: Despite the mixed short-term forecasts, analysts maintain that Delivery Hero's revenue growth is expected to align with industry trends, suggesting a stable long-term trajectory.

Risks and Considerations

• Warning Signs: Analysts have identified at least one significant warning sign for Delivery Hero that investors should consider, highlighting the importance of being aware of potential risks in the company's operations.

Conclusion

• Overall Assessment: While there are concerns regarding increased losses and a lowered price target, the overall revenue growth outlook remains positive, aligning with industry expectations. Investors are encouraged to consider the long-term trajectory of the business amidst these fluctuations.