AlsterResearch Update: Delivery Hero - Negative news flow weighs on share price

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What’s it all about?

Delivery Hero (“DH”) suffered from negative news flow as it suffered a setback in a takeover of a delivery platform in Saudi Arabia. Additionally, wage increases due to labor shortage and impending EU regulation may increase the pressure on the cost side. While this could further delay reaching the break-even point, it also increases potential for consolidation as the European market is seeing increasing competition. To reflect potential wage increases in Europe and increasing competition in Europe, we lower our profit estimates for FY22E and the following year. Our DCF-based PT goes down to EUR 134.00. Our rating remains BUY.