Delivery Hero Shares Jump: Analysts Remains Bullish Despite Volatility

Delivery Hero shares (ETR: DHER) surged 4.62% to €24.69 today, extending a remarkable recovery that has seen the stock climb more than 50% from its November lows.

The rally comes despite a sharp 10.9% pullback last week, underscoring the continued volatility that has characterized trading in the German food delivery giant.

The shares' recent momentum has been underpinned by a wave of positive analyst commentary, with Barclays maintaining a price target of €40, suggesting potential upside of approximately 62% from current levels. This bullish stance reflects growing confidence in Delivery Hero's operational trajectory and strategic positioning across its key markets.

JPMorgan analyst Marcus Diebel recently raised his price target to €50 from €48, maintaining an Overweight rating following the company's robust fourth-quarter performance. The upgrade was prompted by better-than-expected results in both Gross Merchandise Value and EBITDA, with particular strength evident in Saudi Arabia.

Morgan Stanley also resumed coverage of Delivery Hero in January with an Overweight rating and a €40 price target, highlighting a potential 35% upside. The firm's analysis employed a sum-of-the-parts valuation methodology, placing significant emphasis on talabat, the company's Middle Eastern operation, alongside its South Korean business as key value drivers within the group's portfolio.

Strong Performance and Strategic Moves

The company's fourth-quarter GMV reached €12.81 billion, representing an 8.2% increase that surpassed analyst expectations of €12.31 billion. This growth was fueled by robust order demand and larger basket sizes, particularly across the Middle East and Northern Africa region, where GMV hit €3.7 billion.

First-half 2025 results showed sales climbing to €6.88 billion alongside a reduced net loss, prompting management to raise corporate guidance with forecasts pointing to accelerated revenue growth driven by the South Korean market.

Strategic developments have also captured market attention. In December, Delivery Hero announced it was evaluating strategic options, including reviewing partnerships for select country operations and considering capital allocation measures aimed at unlocking shareholder value. The announcement triggered a nearly 6% intraday gain, signaling positive reception to potential portfolio optimization.

Markets appear to be weighing strong operational performance and strategic initiatives against regulatory headwinds and valuation concerns.