Jefferies cuts Delivery Hero to 'hold' on limited Uber deal upside

Jefferies downgrades Delivery Hero DHER.DE to hold from buy, saying Uber's UBER.N planned 41.50 euro-per-share offer leaves limited upside for the German food delivery group.

The broker says the stock's expected 12-month total return of less than 15% to its new price target no longer supports a Buy rating.

It expects Uber will, "on the balance of current evidence", complete the acquisition on the suggested H2 2027 timeline, with a low probability of an offer price adjustment.

The brokerage cuts its price target to 41.50 euros from 42.50 euros, aligning it with Uber's offer price.

The stock has gained 67.25% YTD.