Online food delivery demand has soared as more countries impose coronavirus lockdowns but, while there are problems ahead, the pandemic will bring longer-term benefits for the sector, UBS said on Friday.
However, UBS analyst Hubert Jeaneau said two stocks stood out — German-based multinational Delivery Hero DHER, +0.09% and the recently merged food delivery giant Just Eat Takeaway JET, +3.77%. “Looking at second order impacts, evidence suggests takeaway meal demand levels remain stable during recessions…near-term we are more cautious on revenue growth, but remain bullish medium-term as consumer/restaurant adoption is set to increase,” Jeaneau said.
Delivery Hero has seen positive trends in countries first hit by coronavirus, including South Korea and other Asian countries, but could find the next few months tougher, Jeaneau said in a note.