Ahold Delhaize: UBS downgrades to 'sell'

(CercleFinance.com) - Already cautious towards the stock, UBS has downgraded its former "neutral" rating on Dutch retailer Ahold Delhaize has cut its 12-month target price from 20 euros to 18 euros.


Analysts fear that the consensus on value is now threatened, citing a string of headwinds, especially in the United States: indeed, the local giant Walmart seems aggressive, discount supermarkets are gathering pace, and there is an ongoing rise in online sales. In short, UBS says that the current rate of return rate on capital invested of 13% to 14% could be difficult to maintain.

In addition, Ahold USA's sales have been declining in comparable terms since the beginning of the year and are considered "poor" by UBS. And this is despite price cuts of 150 million euros which the group began to make a year ago.

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