Bernstein Research cuts HelloFresh to 'Neutral'

Analyst says HelloFresh facing headwinds

HelloFresh stock has fallen 60% this year

HelloFresh SE shares fell as much as 6.5% in Frankfurt on Monday after Bernstein Research analyst Bruno Monteyne cut his rating on the company to 'neutral' saying he was "cautious about the outlook."

Monteyne said in a note to clients that he expected HelloFresh to face several headwinds in the coming quarters, including rising food prices, increasing competition, and a potential slowdown in consumer spending.

HelloFresh's stock has fallen by more than 60% so far this year, as investors have become increasingly concerned about the company's ability to maintain its growth rate.

The company has also been facing increasing competition from other meal-kit providers, such as Blue Apron and Sun Basket

In addition, HelloFresh has been raising its prices to offset the rising cost of ingredients, which has led to some customers cancelling their subscriptions.

Monteyne said that he expected HelloFresh to continue to grow in the long term, but that he was "cautious about the outlook" in the near term.

He also said that he was not convinced that HelloFresh could maintain its current valuation, which is around 20 times forward earnings.