Deliveroo: Berenberg initiates coverage with 'hold' rating
(CercleFinance.com) - On Thursday Berenberg initiated its coverage of the Deliveroon share with a 'hold' rating and a target price of 310p, a week after the meal delivery specialist's flop of an IPO.
While the group benefits from a "strong brand" which has enabled it to win market share due to its status as a "pure player", Deliveroo operates in a segment that the German broker considers "highly competitive".
Berenberg said there is no guarantee that the company will be able to win or maintain its market leadership against particularly aggressive rivals with deep pockets.
Deliveroo shares were trading at around 285 pence on the London Stock Exchange on Thursday, having fallen by a whopping 27% from their 390 pence IPO price.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While the group benefits from a "strong brand" which has enabled it to win market share due to its status as a "pure player", Deliveroo operates in a segment that the German broker considers "highly competitive".
Berenberg said there is no guarantee that the company will be able to win or maintain its market leadership against particularly aggressive rivals with deep pockets.
Deliveroo shares were trading at around 285 pence on the London Stock Exchange on Thursday, having fallen by a whopping 27% from their 390 pence IPO price.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.