Carrefour: excessively sanctioned, Oddo BHF says

(CercleFinance.com) - Oddo BHF is maintaining its “buy” rating on the Carrefour stock, along with its target price of 20 euros, saying that the retail giant's share has been excessively sanctioned by the “gilets jaunes” crisis.
It adds that Carrefour is again suffering from a severe discount relative to peers.

According to analysts, the market expects 120 million euros to be wiped off the group's EBIT due to this crisis, while it estimates half this level. In addition, the market is failing to give credit to the group's cost optimisation plan.

A better configuration of margins in Brazil backs Oddo BHF in maintaining its consolidated EBIT forecast for 2018 and is raising its corresponding estimates by 2% for 2019, pointing to the extraordinary nature of the social crisis in France.


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