Metro AG: Invest Securities raises target

(CercleFinance.com) - An analyst at Invest Securities today announced that he is raising his target price for the Metro AG share, despite FY results that “once again” have disappointed, and a guidance that is "not very encouraging".


Although final figures published are in line with the company's latest forecasts and the consensus, the guidance announced is not very encouraging, highlighting the group's renewed conquest of the Russian market, which is proving both difficult and complex. Even diluted by the severe correction of income that the group generates there, the remaining contribution of 25% of the group's EBIT will continue to weigh on the formation of the consolidated figures. In the end, the broker is not altering its earnings estimates by much (EPS of 1.08 euro in 2019, followed by 1.23 euro in 2020 vs. 0.95 euro previously), although the driver first excludes operational items, while the group's exit from Real is still to be finalised, Invest Securities says.

The broker is therefore maintaining its neutral rating on the stock, with a target price of 13.2 euros (vs. 12.60 euros).



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