Delivery Hero (XTRA:DHER) Is Up 21.8% After Launching Strategic Review Of Portfolio And Capital Allocation – Has The Bull Case Changed?

• Delivery Hero recently confirmed that it is reviewing capital allocation and exploring options such as partnerships, asset sales, and other structural moves after large shareholders criticized its financial performance and portfolio strategy, following an approximate 53% share price drop over the past year that left the group valued at about €5.20 billion (US$6.10 billion).
• An important wrinkle is that investors and potential industry buyers are said to be particularly interested in high-quality assets like Korea’s Baedal Minjok, raising the prospect that any breakup or portfolio reshaping could hinge on whether the company is willing to part with some of its strongest regional platforms.
• We’ll now examine how this shareholder-driven review of capital allocation and potential asset sales could reshape Delivery Hero’s existing investment narrative.

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Delivery Hero Investment Narrative Recap

To own Delivery Hero, you need to believe that its global delivery platform can convert scale into sustainable profits despite ongoing losses, regulatory risks and intense competition. The current shareholder-driven review of capital allocation is now a key short term catalyst, but it also raises execution risk if valuable assets are sold on less-than-ideal terms or regulatory hurdles limit who can buy them.

The company’s recent confirmation that it is assessing “best-owner” options, partnerships and capital market transactions across selected assets ties directly into this catalyst, because it could accelerate portfolio reshaping after years of uneven performance and asset optimization attempts. At the same time, any asset sale discussions with competitors, such as those reportedly mentioned by investors, may run into regulatory constraints that limit flexibility and timing.

Yet against this potential value unlock, investors should also be aware of how European employment model changes and legal claims could still...

Read the full narrative on Delivery Hero (it's free!)

Delivery Hero’s narrative projects €17.9 billion revenue and €295.6 million earnings by 2028.

Uncover how Delivery Hero's forecasts yield a €29.55 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community currently see fair value for Delivery Hero between €27.00 and €68.19, reflecting very different expectations about upside. When you set those views against the pressure for asset sales and ongoing regulatory risks, it underlines how important it is to compare several perspectives before forming your own opinion.

Explore 8 other fair value estimates on Delivery Hero - why the stock might be worth over 3x more than the current price!

Build Your Own Delivery Hero Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Delivery Hero research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Delivery Hero research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Delivery Hero's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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