Colruyt: stock hit as analyst maintains sell rating
(CercleFinance.com) - The share of Belgian supermarket chain Colruyt is down sharply (-5% at noon) on the Brussels Stock Exchange after the group announced its results.
Oddo says that the share's valuation multiples (20% premium vs. peers in terms of 2021e P/E) are leading it to maintain a Reduce rating, along with a target price of 46 euros (current price 51.8 euros).
Oddo believes that the 2019 results are broadly in line with estimates, with a 2.1% increase in adjusted net income (group share).
The broker said that both the group's sales and market share were disappointing. It believed that the group would benefit more from the storage period (there were only 15 days of lockdown in FY 2019/20).
The group has not yet provided any guidelines. Analysts say that it is traditionally cautious, although uncertainties seem greater than usual, with the impact of covid-19 and the forthcoming economic crisis.
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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.
Oddo says that the share's valuation multiples (20% premium vs. peers in terms of 2021e P/E) are leading it to maintain a Reduce rating, along with a target price of 46 euros (current price 51.8 euros).
Oddo believes that the 2019 results are broadly in line with estimates, with a 2.1% increase in adjusted net income (group share).
The broker said that both the group's sales and market share were disappointing. It believed that the group would benefit more from the storage period (there were only 15 days of lockdown in FY 2019/20).
The group has not yet provided any guidelines. Analysts say that it is traditionally cautious, although uncertainties seem greater than usual, with the impact of covid-19 and the forthcoming economic crisis.
Copyright (c) 2020 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.