Carrefour: Invest Securities confirms estimates
(CercleFinance.com) - Invest Securities believes this morning that Carrefour's forthcoming sales publications will be affected by its overexposure to "poor performers" in terms of handling the Covid crisis, both in France, Europe, as well as Brazil.
On top of this, there could soon be excessive consumption outside the home with the reopening of restaurants and the resumption of work in offices, along with the end to the positive effect stemming from the pandemic, the broker notes.
Q1 (group LFL: +3% (e)) will only provide an initial glimpse of the breaks in trends that the company needs to prepare for, bearing in mind that France should remain resilient with LFL growth of +1% (e). Between the decline in revenues and the gradual normalisation of the cost base, it is difficult to assess the impact on margins, Invest Securities says.
The analyst believes that it is still premature to change earnings estimates. The broker maintains its target price of 15.2 euros for the share (pretty much its current price), along with a neutral rating on it.
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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.
On top of this, there could soon be excessive consumption outside the home with the reopening of restaurants and the resumption of work in offices, along with the end to the positive effect stemming from the pandemic, the broker notes.
Q1 (group LFL: +3% (e)) will only provide an initial glimpse of the breaks in trends that the company needs to prepare for, bearing in mind that France should remain resilient with LFL growth of +1% (e). Between the decline in revenues and the gradual normalisation of the cost base, it is difficult to assess the impact on margins, Invest Securities says.
The analyst believes that it is still premature to change earnings estimates. The broker maintains its target price of 15.2 euros for the share (pretty much its current price), along with a neutral rating on it.
Copyright (c) 2021 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.