On Tuesday, UBS maintained its Buy rating on HelloFresh (OTC:HLFFF) SE, listed on the Frankfurt Stock Exchange as HFG:GR and over-the-counter as OTC: HLFFF, raising the price target to EUR5.90 from the previous EUR5.80.
The adjustment comes amid expectations of stronger organic sales for the company's fourth quarter, particularly due to technical factors in the Asia-Pacific region.
The firm's analyst cited specific reasons for the increased price target, pointing to "phasing/technical factors in APAC" that could potentially boost HelloFresh's organic sales for the quarter. Despite this adjustment, the analyst believes that there have been no changes in the underlying trends for the meal-kit provider.
HelloFresh, which has been experiencing growth, is expected to benefit from this slight increase in the price target as it reflects a positive outlook on its financial performance. The company's focus on delivering meal kits that offer convenience and variety has been resonating with consumers, and this sentiment is echoed in UBS's rating.
The analyst's comments suggest that UBS's projections for HelloFresh's quarterly performance are modestly more optimistic than the consensus. This implies that the firm has confidence in HelloFresh's ability to outperform market expectations, at least in the short term.
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