Metro: Invest Securities downgrades stock

(CercleFinance.com) - Invest Securities has downgraded its rating on the Metro share from "neutral" to "sell", believing that 2020/21 will be jeopardised for the German distribution group, seeing a risk of further reductions in earnings estimates in its scenario.


Clearly, the stockmarket momentum that has enabled the share to quickly recover by around 35% from its 2020 lows, hides a rebound in earnings that has been postponed until the group's fiscal year beginning in October,

Although analysts did not see this stockmarket recovery, which has been influenced by a sector rotation, favouring a stock deemed to be a value stock (dividend maintained), their target price, which they have nudged up from 7.6 euros to 8.2 euros (current price: 10.2 euros), justifies why they have adopted a sell rating.


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