Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - UBS has upgraded HelloFresh SE (ETR:HFG) (OTC:HLFFF) from Neutral to Buy while raising its price target to EUR10.80 from EUR7.60.
The upgrade comes as UBS anticipates HelloFresh’s revenue declines will begin to abate from the third quarter of 2025, with a return to constant currency growth expected from the second quarter of 2026.
HelloFresh had previously guided for fiscal year 2025 top-line growth between -3% and -8% in constant currency terms at its FY24 results announcement, which was later narrowed to -6% to -8% at the company’s first-half 2025 results.
UBS developed a proprietary cohort model to analyze HelloFresh’s customer base both before and after the company’s strategic pivot, providing what the firm calls "a granular representation of the group’s customers."
This detailed analysis has given UBS increased confidence in HelloFresh’s ability to stabilize revenues and return to growth despite previous concerns about the company’s track record and uncertainty surrounding its strategic initiatives.
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