Bank of America just raised its EUR/USD forecast
On Wednesday, Deutsche Bank (ETR:DBKGn) analysts, led by Silvia Cuneo, downgraded Deliveroo Holdings PLC (LON:ROO:LN) (OTC: DROOF) stock rating from Buy to Hold and increased the price target to GBP1.80, up from GBP1.75. According to InvestingPro data, the stock has shown remarkable strength, gaining over 55% in the past year and currently trading near its 52-week high. The adjustment comes in response to the acquisition terms agreed upon by DoorDash (NASDAQ:DASH), which has made a recommended cash offer of 180p per share for Deliveroo (OTC:DROOF). This offer is a 23% premium over Deliveroo’s share price on April 25, 2025.
The revised price target reflects the limited upside potential following DoorDash’s offer, which is in line with the acquisition terms. Deutsche Bank’s decision to downgrade is based on the expectation that the current terms will likely remain unchanged. Although DoorDash has the option to raise its bid in the event of a competing offer, Deutsche Bank’s base case assumes no such counter-bid will materialize. InvestingPro analysis shows Deliveroo maintains strong financial health with a current ratio of 1.71 and more cash than debt on its balance sheet.
The 180p per share offer from DoorDash has been recommended by the Deliveroo Independent (LON:IOG) Committee, which plans to advise shareholders to vote in favor of the acquisition. Notably, key shareholders of Deliveroo, including the CEO and Co-founder, who collectively hold approximately 15.4% of the outstanding shares, have already pledged their commitment to the offer.
Deutsche Bank’s new hold rating indicates a neutral stance on Deliveroo shares, suggesting that the analysts see limited growth prospects for the stock at this time. The bank’s analysis takes into account the current acquisition scenario and the likelihood of it proceeding without significant changes. While currently unprofitable, InvestingPro analysts expect Deliveroo to achieve profitability this year. Discover 13 additional exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, Deliveroo Holdings PLC has been at the center of analyst activity and acquisition discussions. Kepler Cheuvreux initiated coverage on Deliveroo with a Reduce rating, citing challenges in the competitive food delivery market and the impact of Meituan’s international expansion. The firm set a price target of £1.56, expressing concerns over Deliveroo’s future if it continues to operate independently. Meanwhile, Morgan Stanley (NYSE:MS) downgraded Deliveroo from Overweight to Equalweight, raising its price target to GBP1.80. This adjustment comes after Deliveroo confirmed receiving an indicative proposal from DoorDash to acquire the company for 180p per share, valuing it at approximately £2.7 billion.
Morgan Stanley noted that the DoorDash offer represents a significant premium over Deliveroo’s recent stock prices, suggesting that the shares may trade close to this offer price in the near future. The potential acquisition by DoorDash is not yet firm, but it has become a focal point for investors and analysts. Deliveroo’s strategic decisions and market movements are likely to be influenced by these developments. As Deliveroo navigates this landscape, the company remains under close observation from market participants.
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