Marley Spoon Group SE Maintains BUY Rating Despite Market Challenges

NuWays AG has restated a BUY recommendation for Marley Spoon Group SE (MSG) with a target price of €8.00, reflecting the company's resilience in a challenging market. This update follows HelloFresh's recent forecast, indicating weaker-than-expected outlook and reduced mid-term targets, significantly impacting its stock value. Despite these adverse conditions, MSG appears to be less affected, as negative market expectations have already been incorporated into its share price after a revenue decline in FY23.

Marley Spoon's strategy, including improved marketing efficiency and enhanced customer retention, is expected to result in a 5.2% growth in organic sales, reaching €346m. The company's adjusted expectations come in light of the meal kit industry's anticipated recovery, with MSG's active subscribers predicted to increase by 3% year-over-year to 195k. Trading at just 0.32x EV/Sales 2024e, Marley Spoon presents an attractive investment opportunity according to NuWays AG's analysis.