Mercialys: Jefferies downgrades stock

(CercleFinance.com) - On Wednesday Jefferies downgraded its recommendation on Mercialys shares from 'buy' to 'neutral', following Casino's announcement yesterday of its intention to close six hypermarkets it operates.


The analyst - who lowers the stock's target price from E13 to E12.5 - expresses fears that this decision will compromise the turnaround orchestrated by the shopping center specialist in its other assets.

Fearing further pressure on the group's earnings, Jefferies has lowered its estimates for funds from operations (FFO) for 2025 and 2026 by 1% and 3% respectively.

The broker also justifies its downgrade by the fact that, at last night's close, Mercialys' share is up 22% YTD.


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