Delivery Hero: Continued Sales Momentum Despite Weak Spots in Asia

We maintain our EUR 34 per share fair value estimate for narrow-moat Delivery Hero after the firm reported its first-quarter trading update in line with our expectations. Management reaffirmed its 2025 targets, including 8%-10% GMV growth, total segment revenue growth of 17%-19%, and adjusted EBITDA between EUR 975 million and EUR 1.025 billion. On April 23, Delivery Hero announced it is exiting its Thailand business, which we think will be margin accretive as the firm focuses on more profitable geographies. Shares fell following the announcement due to uncertainty around Delivery Hero's strategic market exits and weaker-than-expected performance in Asia. Still, we think Delivery Hero is well placed to benefit from the secular trend of digitization of food delivery orders and is on track to meet our long-term forecasts.