Carrefour: Credit Suisse downgrades rating.
(CercleFinance.com) - Credit Suisse has downgraded its rating on Carrefour from "neutral" to "underperform," cutting its target price from 21 euros to 15.
5 euros, highlighting "growing evidence of structural problems" at the retail giant.
"With the company's earnings miss in 1H17 and lower FY17 guidance it is clear that the problems within its model are now affecting financial performance," the analysts underlined.
According to him, these problems include over-dependence on the hypermarket format, slow adoption of online channels (both for food and other products) and high capex.
The analyst expects that French margins will remain depressed in 2018 and has reduced his forecasts operating profit for 2017-2020, reducing its target price and downgrading its rating as a result.
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.
5 euros, highlighting "growing evidence of structural problems" at the retail giant.
"With the company's earnings miss in 1H17 and lower FY17 guidance it is clear that the problems within its model are now affecting financial performance," the analysts underlined.
According to him, these problems include over-dependence on the hypermarket format, slow adoption of online channels (both for food and other products) and high capex.
The analyst expects that French margins will remain depressed in 2018 and has reduced his forecasts operating profit for 2017-2020, reducing its target price and downgrading its rating as a result.
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.