Investment bank UBS has listed seven stocks to buy in online food delivery, as the market looks set to boom in the next couple of years.
People ordering takeout more frequently — and spending more when they do — means the sector could reach a value of almost $400 billion by 2024, the bank said. A Euromonitor estimate, meanwhile, said it could be worth $1 trillion in the next decade.
The sector, which already got a boost as people stayed at home during the coronavirus pandemic, is set for a compound annual growth rate of more than 20% a year between 2019 and 2024, UBS analysts led by Sreedhar Mahamkali said in a note published last week.
It comes as Amazon-backed Deliveroo prepares for a stock market listing, with reports suggesting a blockbuster valuation of around $10 billion.
Below is a list of UBS's "most favored" food delivery stocks. All are buy rated by the bank and most have an upside potential of more than 30%:
