Casino: Bernstein says group has 'several problems'
(CercleFinance.com) - An analyst at Bernstein confirms his "underperform" rating on the Casino share, coupled with a target price of 28 euros, while the French retailer saw its stock suspended from trading this morning after falling by 6.
4% .
According to Bernstein, Casino faces a number of problems. First, its parent companies (Rally, Foncière Euris, Finatis) are overlevered, and then, the dividend paid, it says, is too high.
The group should "prioritize paying down the debt," Bernstein believes, adding that, "The accounts of Casino need material adjustments to properly assess the company's value. This is in our view the least discussed but most important element of this debate."
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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% .
According to Bernstein, Casino faces a number of problems. First, its parent companies (Rally, Foncière Euris, Finatis) are overlevered, and then, the dividend paid, it says, is too high.
The group should "prioritize paying down the debt," Bernstein believes, adding that, "The accounts of Casino need material adjustments to properly assess the company's value. This is in our view the least discussed but most important element of this debate."
Copyright (c) 2019 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.