Hold Rating on Deliveroo: Impact of DoorDash Acquisition Offer and Market Valuation Shift

Deliveroo plc Class A (ROO – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Giles Thorne from Jefferies downgraded the rating on the stock to a Hold and gave it a p180.00 price target.

Giles Thorne has given his Hold rating due to a combination of factors surrounding the recent developments with Deliveroo plc Class A. The primary reason for this rating is the high likelihood of a successful acquisition of Deliveroo by DoorDash, which has made a final offer of 180p per share. As a result, Thorne adjusted the price target to match this offer price, leading to a downgrade from a previous Buy rating to Hold.
Despite maintaining the same forecasts and a DCF-based fair value estimate of 225p, the limited potential for share price appreciation influenced the decision to downgrade. The offer from DoorDash implies a FY26 EV/EBITDA multiple significantly lower than that of US peers, further supporting the Hold rating. This strategic shift in valuation methodology reflects the current market dynamics and the expected outcome of the acquisition process.

In another report released today, Deutsche Bank also downgraded the stock to a Hold with a £1.80 price target.