© Reuters.
By Scott Kanowsky
Investing.com — Stocks in Deliveroo Entries PLC (LON:) rose in early trading on Thursday after Credit Suisse analysts upgraded their rating on the food delivery service to outperform from neutral.
Analysts argued that Deliveroo has an economic valuation and the potential for larger share buybacks, calling the company an “unrewarded superior.”
They added that the group has shown its potential, particularly in terms of future profitability, through the 2022 financial year. Credit Suisse analysts said Deliveroo’s balance sheet also remains strong, allowing the company to hold its own. of the acquisition offers through the repurchase of shares.
The comments come as Deliveroo is due to reveal its 2022 results on March 16. The group has said its annual core profit margin is now expected to be higher than its previous guidance after elevated prices and cost cuts helped ease the impact of a drop in orders. in the fourth quarter.
Meanwhile, chief executive William Shu predicted in January that adjusted basic income will improve in 2023 despite an “uncertain” economic outlook.
