Jeronimo Martins: shares drop on Berenberg downgrade

(CercleFinance.com) - Jeronimo Martins shares are down 2.
2% at 14.6 euros on Monday after Berenberg downgraded its rating on the Portuguese retailer from "buy" to "hold", ahead of the group's quarterly results on 25 July.

"We expect strong top-line momentum to be sustained into the second quarter, boosted by fiscal stimulus and positive inflation trends," the German broker wrote in a note to clients.

Berenberg also cut its target price for the share, from 17.1 euros to 15.8 euros.

In the note, the broker said that the Polish retail sales tax will be "the key focus" of the report.

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