Casino: reacts to Bernstein's negative report

(CercleFinance.com) - In a statement issued late on Wednesday afternoon, Casino group reacted to the note published by Bernstein in the morning, which badly hit the share price, having finished trading down 6%.


Bernstein downgraded its recommendation on the share to "underperform," slashing its corresponding target price from 35 euros to 26 euros, amid fears about the financial impact of the group's franchise agreements.

"Casino refutes the report's presentation of the cash impact of those operations... Casino has no obligation to buy back the stores transferred to franchisees. In a very unlikely scenario where all the stores transferred would have to be simultaneously closed, the one-off cost for the Group would be limited to around 50 million euros."

The group also points out that it firmly believes in its franchisee business model, which is central to its strategy.



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