Delivery Hero shares have more than doubled in value over the past three months. With bonus certificates with a cap, investors can still achieve very high returns even if the share price has halved again.
With the share of the food delivery company Delivery-Hero-Aktie, which was demoted from the DAX, investors were able to achieve high price gains in the past few weeks after a sharp drop in price from 120 euros to up to 24 euros. Since its low for the year in early May 2022, the share, which is now listed above 50 euros, has more than doubled.
Due to the increasing profitability and the positive outlook for the third quarter, experts with price targets of up to 95 euros (Jefferies
The investment idea
Although Delivery Hero's price has doubled in the past three months, there could still be a chance for further price gains at the current level. However, if you want to significantly reduce the undoubtedly existing price risk of direct share purchases and still want to achieve a return in the double-digit percentage range, you could consider purchasing a bonus certificate with a cap as an alternative to buying shares.
Apart from dividend payments, the direct purchase of the Delivery Hero share will only enable a positive return if the share price increases. With bonus certificates with and without a cap, investors can achieve disproportionately high returns not only when the share price rises, but also when prices are stagnating or falling.
The way it works
If the Delivery Hero share never touches or falls below the barrier of EUR 22.50 by the certificate's valuation date, the bonus certificate with cap will be repaid on June 23, 2023 with the maximum repayment amount of EUR 34.
The key data
The HVB bonus certificate with a cap (ISIN: DE000HB5ZWK8) on the Delivery Hero share has a bonus level and a cap of EUR 34. The cap defines the maximum payout amount of the certificate. The barrier activated by the valuation date, June 16, 2023, is EUR 22.50. With a share price of EUR 51.58, investors were able to purchase the certificate for EUR 28.28.
The chance
Since the certificate can currently be bought at EUR 28.28, it enables a gross return of 20.23 percent (=24 percent per year) until June 2023 if the share price never falls by 56.37 percent to 22.50 by the valuation date euros or below.
The Risks
If the price of the Delivery Hero share touches the barrier of EUR 22.50 by the valuation date and the share is listed below the cap on the valuation date, investors will receive one share of the company in their custody account for each certificate. If this share is sold below EUR 28.28, the purchase price of the certificate, then the investment will cause a capital loss.
This article does not constitute a recommendation to buy or sell Delivery Hero shares or investment products based on Delivery Hero shares. No liability is assumed for the correctness of the data.
