The shares of the operator of online order forms for food, Delivery Hero share (ISIN: DE000A2E4K43), which is active in more than 40 countries, have undoubtedly been one of the winners of the corona crisis in the past few months. After the DAX newcomer was able to reach an all-time high of 106.20 euros on July 6, 2020 after the steep price increase in spring and early summer 2020, it entered a volatile sideways movement within a range of 85 euros to 105 euros. In the past few days, the share price fell sharply in the generally weak stock market environment.
For investors who want to follow the latest assessments of the experts at the analyst firm RBC Personal-Financial.com Markets at the reduced price level, in the course of which the Delivery Hero share is recommended for purchase with a price target of 130 euros, an investment in Discount calls can be interesting.
The investment idea: Investors who trust Delivery Hero shares to stabilize after the recent price declines in recent days and who want to reduce the price risk of buying shares directly could consider investing in discount certificates on Delivery Hero shares. Due to the cheaper entry into the share, discount certificates significantly reduce the risk of buying shares directly. On the other hand, in contrast to the unlimited profit potential of the equity investment, the return potential of the discount certificates is limited.
How it works: If the Delivery Hero share is listed on or above the cap on the valuation day of the certificate, which defines the highest payout amount for the certificate, then the discount certificate will be repaid with its maximum amount of 72.50 euros.
The key data: The Morgan Stanley Discount Certificate (ISIN: DE000MA1V1Q7) on the Delivery Hero share has a cap of EUR 72.50. The valuation date is June 18, 2021, the certificate will be redeemed on June 28, 2021. At the Delivery Hero share price of 92.64 euros, investors could buy the certificate for 67.57 euros. The certificate is therefore 27.06 percent cheaper than the share.
The opportunities: Since investors can currently purchase the certificate for EUR 67.57, it will enable a gross return of 7.30 percent over the next eleven months if the share price is above the cap of EUR 72.50 on the valuation day. This means that the share price can still allow itself to drop by 21.74 percent before the maximum return on this certificate is in danger.
The risks: If the Delivery Hero share is listed below the cap of EUR 72.50 on the valuation day, the certificate will be repaid at the closing price of the share determined on the valuation day. If the share is listed below the purchase price of the certificate on that day, i.e. below EUR 67.57, the certificate investment will cause a loss – before expenses.
This article does not constitute a recommendation to buy or sell Delivery Hero shares or investment products on Delivery Hero shares. No liability is assumed for the correctness of the data.
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