Bernstein Downgrades HelloFresh to 'Market-Perform', Sets Price Target of €7.20
Key Points
* Bernstein downgraded HelloFresh from 'Outperform' to 'Market-Perform'. * The downgrade reflects increased competition in the meal-kit delivery market and concerns about HelloFresh's profitability. * Bernstein set a new price target of €7.20 for HelloFresh, down from €10.50 previously.Analysis
HelloFresh has been facing increased competition from rivals such as Blue Apron, Sun Basket, and Marley Spoon. This competition has put pressure on HelloFresh's margins, and the company has been struggling to maintain profitability. Bernstein believes that HelloFresh will continue to face challenges in the competitive meal-kit delivery market.
Bernstein also expressed concerns about HelloFresh's recent acquisition of Factor75, a meal delivery service that caters to athletes and people with dietary restrictions. Bernstein believes that this acquisition could distract HelloFresh from its core business and weigh on its profitability.
Bernstein's downgrade is a negative sign for HelloFresh, and it is likely to put pressure on the company's stock price. Investors should watch HelloFresh closely in the coming months to see how the company responds to the increased competition and recent acquisition.
