Ahold Delhaize: UBS reiterates its sell recommendation
(CercleFinance.com) - In today's note, the analyst says that the stability of Q2 is unlikely to enable the company to achieve its targets for the FY 2025e.
He therefore confirms his sell recommendation on the stock, with an unchanged price target of E27 - a new target that implies a 6% downside potential for the Belgian-Dutch food retailer's stock.
"A steady Q2 is unlikely to answer FY25e margin outlook question in our view when we see downside risk from AD's price investments; reiterate Sell".
Ahold Delhaize's strategy of accelerating growth and cutting prices in the US should lead to a period of group EBIT margin below 4%, the broker warns, which sees downside risks for FY 2025.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
He therefore confirms his sell recommendation on the stock, with an unchanged price target of E27 - a new target that implies a 6% downside potential for the Belgian-Dutch food retailer's stock.
"A steady Q2 is unlikely to answer FY25e margin outlook question in our view when we see downside risk from AD's price investments; reiterate Sell".
Ahold Delhaize's strategy of accelerating growth and cutting prices in the US should lead to a period of group EBIT margin below 4%, the broker warns, which sees downside risks for FY 2025.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.