Ahold Delhaize: Credit Suisse starts coverage with 'neutral'
(CercleFinance.com) - Credit Suisse is initiating coverage of Ahold Delhaize with a "neutral" rating and target price of 24 euros, seeing "limited" upside in the Dutch-based retailer's shares.
"With a multi-year merger synergy realization process approaching its conclusion, we anticipate limited upside to valuation," the broker writes in a note.
As synergies between Ahold and Delhaiza are about to cease, focus now shifts to investment in shops, it says.
Credit Suisse says US segment sales and operating profit growth are likely to slow.
The broker sees, however, limited downside risk on the shares given the quality of the group's business.
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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.
"With a multi-year merger synergy realization process approaching its conclusion, we anticipate limited upside to valuation," the broker writes in a note.
As synergies between Ahold and Delhaiza are about to cease, focus now shifts to investment in shops, it says.
Credit Suisse says US segment sales and operating profit growth are likely to slow.
The broker sees, however, limited downside risk on the shares given the quality of the group's business.
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.