Delivery Hero (XTRA:DHER) Stock Surges 16% Over the Last Week

Delivery Hero (XTRA:DHER) recently announced improved earnings for the first half of 2025, reporting sales growth to EUR 6,880 million and a reduced net loss, signaling positive financial momentum. This was supported by raised corporate guidance, forecasting a significant revenue increase, fueled by accelerated growth in South Korea. Over the past week, Delivery Hero's stock price moved up by 16%, a notable shift compared to the broader market rise of 1.4%. These earnings announcements and optimistic guidance likely contributed significant weight to the company's impressive share price performance in the context of a generally rising market.

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Delivery Hero's recent earnings announcement and enhanced corporate guidance have injected a positive sentiment into the company's narrative. With improved sales reaching EUR 6.88 billion and a narrower net loss for the first half of 2025, the firm appears to be making strides in revenue growth, notably in South Korea. This development is in line with analysts' projections of a 10% annual revenue growth over the next three years. However, achieving profitability remains an open question as the company works towards a projected earnings turnaround by 2028, which analysts forecast to reach EUR 295.6 million. The current share price of €26.43, while demonstrating a healthy increase over the short term, still lags behind the consensus analyst price target of €33.89 by 28.2%.

Over the past year, Delivery Hero's total return, including dividends, was a 0.83% decline, contrasting with the broader German market's 17.1% rise for the same period. Relative to its industry, Delivery Hero underperformed the German Hospitality sector, which saw a 7.4% increase over one year. Despite its position below the consensus target, the recent price uptick reflects optimism connected to the company's strategic efforts and operational improvements. Analysts' continuing disagreement over future earnings, however, highlights the risks related to regulatory challenges, currency fluctuations, and competitive pressures, which could impact revenue and earnings forecasts. This price movement indicates potential investor confidence in the company's growth prospects, yet Delivery Hero's valuation relative to industry peers could suggest further room for countermove as it progresses towards its targets.

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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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