Colruyt: stock slumps as broker cuts TP

(CercleFinance.com) - Barclays reinstates its "underweight" rating on Colruyt shares, reducing its target price for them to 19 euros (from 23 euros), in the wake of a 16% reduction in EPS forecasts for the Belgian food retailer, for which it deems it difficult to see any positives.


"We become more negative on Colruyt's margin outlook following weaker than expected 1H results, while costs are set to increase further in 2H," the broker says.

Colruyt's H1 EBIT and net profit came in well below Barclays and consensus expectations "due to the group's aggressive commercial strategy and a significant increase in operating costs".

In a spin, the share is currently down 16.5% in Brussels.


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