Buy Rating for Delivery Hero SE: Positive Financial Outlook Boosted by $250 Million Termination Fee from Uber

Delivery Hero SE (DHER – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Luke Holbrook from Morgan Stanley maintained a Buy rating on the stock and has a €38.00 price target.

Luke Holbrook has given his Buy rating due to a combination of factors that positively impact Delivery Hero SE’s financial outlook. One significant factor is the confirmation of a $250 million termination fee that Uber will pay to Delivery Hero. This fee arises from Uber’s decision not to appeal a regulatory block on the sale of Delivery Hero’s Taiwan business to Uber, a move that was anticipated by investors but is now confirmed.
The termination fee represents approximately 26% of the deal size and about 3% of Delivery Hero’s market capitalization, which is a substantial financial boost. This payment is perceived positively in the market, as it strengthens Delivery Hero’s financial position and provides additional capital that can be used for strategic investments or other corporate purposes. These factors combined contribute to a favorable outlook for Delivery Hero’s stock, justifying the Buy rating.

In another report released on March 3, J.P. Morgan also maintained a Buy rating on the stock with a €50.00 price target.