questionably acquired - Expert predicts a 40% possibility for substitution

questionably acquired - Expert predicts a 40% possibility for substitution

Meal kit provider HelloFresh slips, but analysts see potential

In a surprising hit, meal kit provider HelloFresh suffered a 10% loss on Monday, sparked by reports of a possible child labor investigation at a US factory. However, Hauck Aufhäuser analyst Christian Salis believes the backlash was unwarranted. With a 40% upside potential, Salis remains hopeful about the company's future.

Does the fallout for HelloFresh justify the punishment?

Although the US Department of Labor's probe targets Midway Staffing, the service provider for HelloFresh, the investigation hasn't lashed out at the meal kit provider itself. Following the news, the MDAX company promptly discontinued its partnership with Midway Staffing, minimizing potential reputational damage and risk of penalties.

This operational setback, combined with signs of improvement, has engendered optimism from analysts, who remain confident in HelloFresh's meal kit delivery service. With a price target of €17, Salis envisions a robust 40% upsurge from the current levels.

Should you take a closer look at HelloFresh?

With ongoing operational improvements and a positive chart outlook, HelloFresh might be a stock worth considering, especially as it attempts to overcome the sell-off gap from March, setting the stage for further growth. BÖRSE ONLINE also endorses the purchase, preferring a price target of €20.

For those interested, here's the chart from TradingView:

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The current market sentiment surrounding HelloFresh (HELFY/OTC: HELFY, ETR:HFG) exhibits cautious optimism and mixed signals rather than an obvious sign that dumping the stock was unjustified or that it boasts guaranteed 40% upside potential. As of mid-June 2025, the stock price fluctuates around $2.61 to $2.69 (OTC: HELFY) and approximately €8.71 (ETR:HFG), partially due to volatility and modest daily changes but a noticeable absence of a notable upward breakout.

Despite reporting negative net income (-$176.3 million TTM) and an EPS of -1.08, the Forward P/E ratio sits at 11.68, indicating room for profitability improvement and a possible undervaluation of the stock. Additionally, the stock's RSI of 24.07 lies within oversold territory, potentially serving as a potential buy signal for a rebound. However, negative trading signs and J.P. Morgan's unfavorable ratings offer a reminder of the inherent risks, suggesting caution is advised before committing to a buy or hold stance.

Ultimately, whether or not the sell-off proves to be overly harsh remains uncertain, but the stock's valuation metrics, oversold technical indicators, and possibility of operational turnaround indicate the likelihood of a near-term upside (close to 40%) if the company manages to achieve improved financial health and growth prospects.

1. In light of the ongoing concerns and recent fair value indicators, it might be beneficial to closely evaluate the potential for finance gains in HelloFresh.
2. Analysts' positive outlook towards HelloFresh, combined with the stock's technical indicators, suggests that investing in stock-market could yield a 40% upside, given improvements in the company's financial health and growth prospects.

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