Carrefour: BarCap raises target price

(CercleFinance.com) - Barclays Capital (BarCap) has repeated its "equal weight" recommendation on Carrefour, while raising its target price for the share by 4% to 16.
3 euros, after it increased its EPS estimates by 1% for 2018 and 3% for subsequent years.

The broker says that this increase is mainly due to recent FX movements in Brazil, where the French food retail giant generates about 15% of its sales and about 35% of its estimated operating profit.

"Although we believe Carrefour is implementing the right strategy (costs savings, acceleration of online strategy, strategic partnerships, etc.), the pace of improvement of its top-line growth in France and Europe still offers limited visibility," BarCap says, which also points to a 2019 P/E of 15.5x, against a sector average of 14.4x.



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