Carrefour: Jefferies remains cautious after sales

(CercleFinance.com) - While confirming its "hold" rating on the Carrefour share this morning, the broker Jefferies has inched up its target price for the share from 15 euros to 16 euros.


The stock is currently trading at over 17 euros this morning on the Paris Stock Exchange, currently in pole position on the CAC 40, up 5%.

The French retailer published its FY 2018 sales yesterday evening. Q4 sales confirmed continued difficulties in Europe, the broker's report laments, although the consequences of the "yellow vests" protests in France have been less than feared. At 22.64 billion euros, Q4 sales were in line with expectations, with the like-for-like decline in French sales proving to be lower than expected (-0.1%, vs. -0.3%).

In addition, Carrefour targets 2018 underlying operating income of around 1,930 million euros, about 2% more than the consensus expects, particularly due to the improving situation in Brazil, analysts add.

However, cautious, Jefferies believes that investors should now focus on 2019, including the expected improvement in Europe, while the group's comparison basis has become less favourable.


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