Ceconomy: Bryan Garnier initiates with 'neutral' rating
(CercleFinance.com) - Bryan Garnier has initiated its coverage of the German consumer electronics retailer Ceconomy with a "neutral" rating and a target price of 10.
4 euros, continuing to prefer France's Fnac Darty.
Despite a 40% fall in the share price year-to-date, the broker thinks it is still too early to return the stock, given the risks weighing on the company.
In a research note, Bryan Garnier cites 2018 guidance which is under threat, a potential capital increase ahead, a possible reclassification to the SDAX index of German small-cap shares, poor visibility and the pending conflict with its shareholder Convergenta.
According to the broker, Ceconomy is more a "medium-term recovery story."
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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.
4 euros, continuing to prefer France's Fnac Darty.
Despite a 40% fall in the share price year-to-date, the broker thinks it is still too early to return the stock, given the risks weighing on the company.
In a research note, Bryan Garnier cites 2018 guidance which is under threat, a potential capital increase ahead, a possible reclassification to the SDAX index of German small-cap shares, poor visibility and the pending conflict with its shareholder Convergenta.
According to the broker, Ceconomy is more a "medium-term recovery story."
Copyright (c) 2018 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.