Ahold Delhaize: Credit Suisse initiates with 'neutral'
(CercleFinance.com) - Credit Suisse has begun to monitor the Belgo-Dutch supermarket operator Ahold Delhaize with a "neutral" rating and a target price of 25 euros.
The broker says the retailer is exposed to the global disruptive shift to new concepts of convenience that have less to do with physical stores, which it thinks the market underestimates due to the company's strong performance in the US.
Credit Suisse also writes that the shares (+7% year-to-date) already seem to price in the high-quality business model and bottom-up initiatives.
However, e-grocery disruption-driven market models suggest little growth in key business, the broker warns in a note.
Ahold Delhaize shares have risen by up to 0.5% on Monday morning.
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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.
The broker says the retailer is exposed to the global disruptive shift to new concepts of convenience that have less to do with physical stores, which it thinks the market underestimates due to the company's strong performance in the US.
Credit Suisse also writes that the shares (+7% year-to-date) already seem to price in the high-quality business model and bottom-up initiatives.
However, e-grocery disruption-driven market models suggest little growth in key business, the broker warns in a note.
Ahold Delhaize shares have risen by up to 0.5% on Monday morning.
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.