Ahold Delhaize: Invest Securities still a buyer
(CercleFinance.com) - The analyst indicates that quarter after quarter, Ahold Delhaize has posted enviable performances, with double-digit top-line growth (Q3 +10.
1% LFL), which has enabled it to absorb the costs of the crisis (+470 million euros YTD), at the same time as the acceleration of omnichannel deployment to improve operating leverage at exemplary profitability levels (Q3 EBIT up +27.7% in the US and margin of 5%).
Europe, where the group relies on the Netherlands and its model, which wins both market share and is profitable, is also proving its worth, even though Q3 was more contrasted. On these bases, AhDel continues to post a remarkable generation of FCF, despite the acceleration of capex, the broker says.
It adds that the stock remains afordable, even though its growth momentum could run out of steam.
Invest Securities maintains its buy rating on the stock, with a target price of 27.6 euros.
Copyright (c) 2020 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.
1% LFL), which has enabled it to absorb the costs of the crisis (+470 million euros YTD), at the same time as the acceleration of omnichannel deployment to improve operating leverage at exemplary profitability levels (Q3 EBIT up +27.7% in the US and margin of 5%).
Europe, where the group relies on the Netherlands and its model, which wins both market share and is profitable, is also proving its worth, even though Q3 was more contrasted. On these bases, AhDel continues to post a remarkable generation of FCF, despite the acceleration of capex, the broker says.
It adds that the stock remains afordable, even though its growth momentum could run out of steam.
Invest Securities maintains its buy rating on the stock, with a target price of 27.6 euros.
Copyright (c) 2020 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.