Casino: Credit Suisse downgrades to 'Neutral'.

(CercleFinance.com) - On Monday Credit Suisse downgraded its recommendation on Casino from "outperform" to "neutral," having maintained its target price at 54 euros.


In a research note, the broker pointed out that the retailer's debt reduction, coupled with improvements in its margins and rises in its subsidiaries' share prices, has resulted in the stock rising by 14% since the beginning of the year, while the Carrefour share has fallen by 5%. Therefore Credit Suisse believes that Casino shares are now fairly valued.

“While the main risk to the group (extreme leverage) has been mitigated, many of the historical risks remain, including a still complex corporate structure, weak free cash flows, low profitability within its hypermarket format, and a lackluster French macroeconomic environment” the broker points out.


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