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Investing.com - Berenberg has reduced its price target on Delivery Hero (ETR:DHER) (OTC:DLVHF) stock to EUR35.00 from EUR37.00 while maintaining a Buy rating on the food delivery company.
The price target adjustment follows Delivery Hero’s August 27 guidance downgrade for both adjusted EBITDA and free cash flow (FCF) for fiscal year 2025.
Berenberg attributes the guidance reduction solely to foreign exchange factors, specifically citing impacts from the U.S. dollar and Korean won, while noting that the company’s underlying operations continue to perform well.
Despite lowering earnings estimates that prompted the price target reduction, Berenberg remains positive on Delivery Hero’s outlook, pointing to the company’s strong organic growth momentum.
The investment firm justified maintaining its Buy rating by highlighting Delivery Hero’s current low valuation multiples despite the revised financial targets.
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