(Bloomberg) -- One of HelloFresh SE’s most optimistic analysts has restored his bullish view on the shares after a turbulent six months for the meal-kit maker.
JPMorgan Chase & Co analyst Marcus Diebel upgraded the German stock to overweight and doubled his price target to €14 from €7. Shares soared as much as 11% on Friday to their highest level since March.
HelloFresh analysts were caught off guard earlier in the year after the company scrapped its 2025 guidance, sending shares into their worst tailspin on record. At the time, Diebel said that his upgrade to overweight had been “clearly premature.”
However, a recent outlook hike and subsequent earnings update have helped some analysts regain their confidence in the stock, with UBS Group AG upgrading HelloFresh to neutral yesterday on the view that the worst is behind the company.
“HelloFresh’s recent results evidenced management executing well on costs and higher than expected marketing efficiency,” JPMorgan’s Diebel wrote in a note.
However, he noted that risks remain.
“Better disclosure has been a constant ask from investors since the company’s IPO and management’s track record in providing realistic guidance has disappointed in past quarters,” Diebel added.
--With assistance from Henry Ren.
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