Carrefour: Jefferies downgrades buy rating.
(CercleFinance.com) - Jefferies, the research department of the American investment bank, this morning downgraded its buy rating on the Carrefour stock to hold.
It has also reduced its corresponding target price, cutting by almost a quarter, from 24.6 euros to 18.5 euros.
Analysts point out that interim operating result of the French retailer came in about 10% below the consensus, and therefore declined more than feared. Margins are under pressure in France, and to a lesser extent in the rest of Europe. Carrefour has also warned that the second half of the year is also going to be difficult.
What about the announcements of the new CEO, Alexandre Bompard? According to Jefferies, the former boss of Fnac Darty underlined the urgency of a new digital strategy, especially at hypermarkets, so as to improve both earnings and cash generation. However, this point would imply a sharper reduction than announced in capex, or even a "sharp rebound" in margins. Mr. Bompard intends to clarify his intentions by the end of the year.
Copyright (c) 2017 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.
It has also reduced its corresponding target price, cutting by almost a quarter, from 24.6 euros to 18.5 euros.
Analysts point out that interim operating result of the French retailer came in about 10% below the consensus, and therefore declined more than feared. Margins are under pressure in France, and to a lesser extent in the rest of Europe. Carrefour has also warned that the second half of the year is also going to be difficult.
What about the announcements of the new CEO, Alexandre Bompard? According to Jefferies, the former boss of Fnac Darty underlined the urgency of a new digital strategy, especially at hypermarkets, so as to improve both earnings and cash generation. However, this point would imply a sharper reduction than announced in capex, or even a "sharp rebound" in margins. Mr. Bompard intends to clarify his intentions by the end of the year.
Copyright (c) 2017 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.