Delivery Hero SE is set to make a comeback to Germany’s benchmark stock gauge just three months after being relegated.
(Bloomberg) — Delivery Hero SE is set to make a comeback to Germany’s benchmark stock gauge just three months after being relegated.
The food delivery firm is on course to replace peer HelloFresh SE in the DAX Index, according to analysts’ estimates. Index provider Qontigo is expected to announce changes to the gauge after 10 p.m. CET on Sept. 5.
Both the firms, however, have been under pressure since the rally fueled by dining-at-home trends spurred by the pandemic faded in 2021 and fierce competition for market share dragged on their profitability.
A plummeting share price saw Delivery Hero getting ousted by Beiersdorf AG in a June rebalancing of the DAX. The firm had made its index debut in 2020 as a replacement for the troubled payment company Wirecard AG.
In its second-quarter earnings, Delivery Hero joined online food-delivery peers in slashing 2022 growth targets, while also upgrading its profit outlook to take account of easing competitive pressures.
Shares have rallied more than 60% since a low in May, while HelloFresh’s stock has continued to decline. Delivery Hero shares are down 58% this year, compared with a drop of more than 65% for Hello Fresh.
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