Jefferies has raised its target price on Delivery Hero (XETRA:DHER, OTCQX:DLVHF) from €29 to €42.50, arguing that the scramble by Uber Technologies Inc (NYSE:UBER, XETRA:UT8)and DoorDash to acquire the German food delivery group is just the beginning of an endgame that should push the shares higher still.
Uber tabled an indicative offer of €33 per share last week, valuing Delivery Hero at around €10 billion, but the approach was swiftly rebuffed.
Uber's board met on 25 May to discuss raising its bid, with the current offer of €38 per share also having been declined by major shareholders.
DoorDash Inc (NYSE:DASH) has separately expressed interest in Delivery Hero's Middle Eastern operations, with some shareholders indicating that the company's 80% stake in Talabat alone could be worth up to €9 billion.
Jefferies analyst Giles Thorne notes the myriad ways the situation could unfold but says the direction of travel for Delivery Hero's share price is clear: upward.
The broker identifies three forces that will shape the outcome.
First, activist investor Aspex Management, now holding around 15% of Delivery Hero, is expected to push for a price significantly above current levels.
Aspex acquired a 5% block directly from Prosus for roughly €335 million at a 22% premium to the 30-day volume-weighted average price, signalling conviction in a much higher exit valuation.
Some investors have indicated they want more than €40 per share, representing a premium of roughly 20% to the current price.
Second, Prosus, the Dutch technology investor which retains a stake of around 17%, must not be overlooked.
Prosus has repeatedly expressed frustration with EU remedies imposed when it acquired Just Eat Takeaway and retains ambitions to build a European e-commerce ecosystem that could include Delivery Hero.
Third, there are significant antitrust hurdles for both suitors. Uber overlaps with Delivery Hero in 22 markets, including nine in Europe, while DoorDash overlaps in 18 markets, with 14 in Europe, making any full takeover or joint carve-up highly complex.
Uber has also explored a joint bid with South Korean internet group Naver for Delivery Hero's Korean arm, valuing that unit at approximately €4.6 billion, suggesting a breakup of the group could ultimately yield more than a single offer for the whole company.
The approach comes at a moment of upheaval for Delivery Hero. Co-founder and chief executive Niklas Östberg announced on 12 May that he will step down by the end of March 2027, following sustained pressure from Aspex, which had been pushing for management change and a faster pace of asset disposals.
Delivery Hero launched a strategic review in December 2025 and is considering a full sale or a series of deals that would spin off the Middle East and Korea divisions separately.
Jefferies carries a buy rating and €42.50 target price on the stock, which last traded at €33.59.