© Reuters
By Scott Kanowsky
Investing.com — Analysts at Goldman Sachs have initiated coverage of HelloFresh SE (ETR:), giving the meal kit delivery service a “Buy” rating and a price target that represents a sharp increase to where the company’s shares are currently trading.
In a note to clients, the analysts predicted that the Berlin-based company will continue to be a profitable business that can generate cash and maintain a strong balance sheet despite concerns over a potential economic downturn and a 65% dip in its share price this year.
“While meal kits are a new category, with no history of trading through a recession, we would note the following: [HelloFresh] is the clear category leader in an under-penetrated market,” the Goldman Sachs analysts added.
Their 12-month price target for HelloFresh was also set at €44 (€1 = $1.0255) a share – a more than 80% upside to the firm’s current share price.
Shares in HelloFresh were slightly higher on Monday.
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