Analyst Monique Pollard from Citi maintained a Hold rating on Deliveroo plc Class A (ROO – Research Report) and keeping the price target at £1.80.
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Monique Pollard’s rating is based on the recent agreement between DoorDash and Deliveroo, which involves a cash offer valuing Deliveroo at approximately £2.9 billion. This valuation translates to an enterprise value of around £2.4 billion, reflecting a multiple of 13.4 times the expected EBITDA for fiscal year 2025. The financial terms of the acquisition are final, with DoorDash indicating no intention to increase the offer unless a competing bid emerges, which is considered unlikely.
Given these circumstances, Pollard’s Hold rating reflects a balanced view of the stock’s potential. The expected share price return of 4.7% suggests limited upside in the near term, as the acquisition terms are already set and the market has likely priced in the news. This rating implies that while the stock may not offer significant short-term gains, it remains a stable investment under the current conditions.
According to TipRanks, Pollard is a 4-star analyst with an average return of 7.7% and a 53.22% success rate.
In another report released on April 29, Morgan Stanley also downgraded the stock to a Hold with a p180.00 price target.