Rocket Internet Declines; Update Has Holes, Northern Trust Says
(Bloomberg) -- Shares declines as much as 4.7% in Frankfurt trading, most since May 9 after reporting on 1Q selected portfolio; vol. in first 5min is 70% of 3-month daily avg.
- Northern Trust’s Neil Campling (sell): Release is “very selective,” aren’t quite of the magnitude as per statement wording
- Says there isn’t an update to LPV, despite the significant ’down round’ for Global Fashion Group, Rocket’s 3rd largest contributor to group LPV
- Says there is a significant slowing of growth
- Points out that Hello Fresh margins have worsened, absolute Ebitda losses almost quadrupled y/y and business burnt through EU26.5m in cash in 1Q suggesting a further raise is highly likely during 2016
- Misses info on profits of Delivery Hero, co’s 2nd largest contributor to group LPV
- Says avg adj. Ebitda margin improvement is only for 7 businesses, doesn’t include 2nd largest at all
- Says statement has to be taken with “a huge grain of salt"; there are holes and issues in 3 largest businesses
RELATED:
- Rocket Internet narrows quarterly losses at portfolio startups
- United Internet still believes in Rocket despite writedown
- Kinnevik to evaluate Rocket stake once holdings mature: DN
DATA:
- Stock has risen 6.1% month-to-date before today’s open vs a 3.3% rise in the Stoxx 600 Financial Services index; is down -21% YTD vs a -6.6% fall in the SXFP index
- Of 10 analyst ratings, 8 are buy, 1 hold, 1 sell, with an average PT of EU33.4
Alert:
HALISTERSource: BFW (Bloomberg First Word)
Tickers NTRS US (Northern Trust Corp)
RKET GR (Rocket Internet SE)
People Neil Campling (Aviate Global LLP)
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