Casino: generous valuation multiples according to Barclays

(CercleFinance.com) - Ahead of Casino's trading update after trading on 25 April, Barclays reiterates its "underweight" recommendation on the stock, along with its target price of 30 euros, while leaving its EPS estimates broadly unchanged after the group announced the disposal loss-making stores.


Barclays considers that the Casino share is "generous valuation multiples given its higher risk profile, more complex group structure and weaker Free Cash Flow generation".

"Casino trades on a FY19E P/E of 15.2x vs 14.7x for the European sector average and 15.7x for its most comparable peer Carrefour," the broker adds.



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