DAX-listed Delivery Hero SE (DE:DHER) is all set to announce its second-quarter and first-half earnings for 2023 this week on Wednesday, August 30. Ahead of the earnings, analysts are highly bullish on the Delivery Hero after the company raised its full-year guidance numbers recently. According to TipRanks’ consensus, analysts expect the company to post negative earnings of €1.32 per share for the second quarter of 2023. This reflects a huge improvement over the negative earnings of €5.64 per share reported in Q2 2022.
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Based in Germany, Delivery Hero is an online food service company that operates in more than 50 countries around the world.
Raised Guidance
In its Q2 2023 trading update, the company accomplished various profitability milestones. It achieved a favorable adjusted EBITDA at the group level while attaining an adjusted EBITDA/GMV (gross merchandise value) margin of 0.2% in the second quarter of 2023. The overall GMV experienced an 8% year-on-year increase, surpassing the initial projections of a 4% rise. Additionally, GMV for the group, excluding Asia, demonstrated a double-digit surge of 18% year-over-year in the second quarter.
Total segment revenue achieved 16% growth in Q2, which is expected to touch 15% for the full year, higher than the 10% projected earlier. The GMV for the full year is anticipated to be between 5% and 7%.
Analysts’ View
Analysts are bullish on DHER stock due to the company’s shifted focus on profitability following a growth surge propelled by the pandemic.
14 days ago, J.P. Morgan analyst Marcus Diebel reiterated his Buy rating on the stock, predicting an upside of 65.4% in the share price.
Analyst Joseph Barnet-Lamb from Credit Suisse believes “DHER is in an enviable position with guidance.” He maintained his Buy rating on the stock 19 days ago and predicts a growth rate of more than 145%.
Is Delivery Hero Stock a Buy?
The Delivery Hero share price has been trading down by 22% this year. Nevertheless, considering the predictions made by analysts concerning the stock, it appears to present a favorable opportunity for investors to enter the market.
According to TipRanks’ analyst consensus, DHER stock has received a Strong Buy rating. The stock has a total of 13 recommendations, of which 11 are Buy. The Delivery Hero share price forecast is €59.92, which implies a huge upside potential of 74.16%.
