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FRANKFURT (dpa-AFX) – Reports about a possible partial sale of the Asian business for a sum worth billions gave the shares of food supplier Delivery Hero a powerful boost on Wednesday. They shot up by 13.5 percent in the afternoon and were recently up 5.6 percent at 31.45 euros, making them one of the biggest winners in the MDAX of medium-sized stocks. However, they were unable to confirm the interim jump above the 21-day line as an indicator of the short-term trend.
According to information from “Wirtschaftswoche”, Delivery Hero is said to be in advanced discussions about selling its activities under the Foodpanda brand in Singapore, Cambodia, Malaysia, Myanmar, Philippines and Thailand. A possible buyer could therefore be Grab from Singapore. The competitor of the MDax group has already started to examine the Foodpanda business and could pay the equivalent of more than one billion euros to Delivery Hero. The remaining Foodpanda markets of Bangladesh, Hong Kong, Laos, Pakistan and Taiwan will apparently remain with Delivery Hero for the time being.
The Delivery Hero shares had already increased thanks to positive analyst opinions and thus further stabilized. In the previous week they had fallen to their lowest level since May 2022 at 28.64 euros. The shares have lost almost a third of their value since the beginning of the year. Analyst Christian Salis from Hauck & Aufhäuser Investment Banking expects the shares to double in price to 65 euros. After the correction of market expectations at the beginning of the year, the news situation is likely to improve, according to the expert. The efficiency plan is being implemented and sales growth has picked up. He expects a significant improvement in profitability in the second half of the year.
JPMorgan also expressed optimism, with analyst Marcus Diebel confirming his “overweight” vote with a price target of 57 euros. The investor focus is again on the cash and thus on the financial situation of the food supplier, he wrote in a study. He assumes that the company can repay its debts on its own. Therefore, any hint of improvement in the balance sheet is likely to be essential to improving investor sentiment./niw/gl/jha/
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