SRH AlsterResearch AG Update: HelloFresh SE - FY guidance increased; PT up, remains SELL

Hellofresh SE (update)

Retail
MCap EUR 12bn

SELL, PT EUR 61.00 (-15% potential)
Research_update

Due to a strong start into the year, the company released preliminary Q1/21 results and increased its full year 2021E guidance. However, the company delivers only little information about what has actually boosted sales. Therefore, only the full set of figures due on May 4 will reveal if sales and respectively earnings increased mainly driven by economies of scale, or if the quality of orders has also improved, e.g., strength in average order value; increased activity of customers or better pricing. For the time being, it seems reasonable that the pandemic driven lockdown once again caused the jump in sales. Having said that, trading on >40x ‘21E earnings the stock still looks overvalued in our view. Hence, we reiterate our SELL recommendation with an updated price target of EUR 61.00 (old EUR 53.00).

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