Deliveroo Shares Cut to Neutral at Exane BNP Paribas

If you are a Deliveroo (LON: ROO) shareholder, it’s been tough going over the last year or so, with the stock firmly rangebound (although it is currently testing the upper part of the range).

Unfortunately, despite the hint of a break higher, Exane BNP Paribas analyst Andrew Gwynn downgraded the stock to Neutral from Outperform on Tuesday…

Gwynn told investors in a note that the valuation was the reason for the downgrade, as the gap relative to Delivery Hero has narrowed. He maintained a 100p per share price target on ROO, which is set to publish a Q1 trading update on Thursday. 

The analyst also upgraded Delivery Hero to Neutral from Underperform with a EUR35 price target.

Given the Deliveroo downgrade and stock market positivity this week, it would not surprise me in the least to see ROO shares break out from the current range. 

Source: us!

Our View: However, much like the stock, the number of consumers talking about Deliveroo on Twitter has remained subdued, almost echoing the share price movement over the last 12 months. 

While a rise in Deliveroo shares could be on the horizon, recent demand trends leave us on the fence at Neutral.

By Sam Boughedda