Report

Rocket Internet : Plenty of cash, but only limited upside

We initiate coverage of Rocket Internet with a Neutral rating and a target price of € 26.0. Since floating Delivery Hero and HelloFresh in 2017, Rocket Internet has reduced its stakes in these companies to 8% and 36% respectively. As a result, the company is sitting on a large pile of (net) cash, which we forecast to grow to € 3.5bn (>80% of Rocket’s current market value) after it sells the remaining shares in Delivery Hero and HelloFresh, probably by the end of 2018. The prospec...
Underlying
Rocket Internet SE

Rocket Internet SE is a Germany-based company active in the investment management and fund operator industry. The Company identifies, builds, scales and retains ownership of Internet companies. It mainly operates in three sectors: e-commerce, including retail companies in the areas of fashion, general merchandise, home and living, office supplies and food groceries; marketplace, comprising companies active in fields such as real estate, travel, transport and food delivery which offer buyers and sellers venues for direct transactions, among others; and financial technology, containing companies bringing together borrowers and lenders in areas like the consumer and small and medium-sized enterprise segments. As a holding company, Rocket Internet AG holds interests in operating subsidiaries divided into regional Internet groups entailing the geographic regions Africa, Asia Pacific, Latin America and the Middle East. The Company has a controlling interest in HelloFresh GmbH.

Provider
Oddo BHF
Oddo BHF

​Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.

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