Carrefour: reputation tarnished in Brazil, but Stifel says b
(CercleFinance.com) - Stifel maintains its buy rating on the Carrefour share, although points out the high risk to the Group's reputation in Brazil.
Indeed, the actions of a Carrefour employee in a shop in Porto Alegre led to the death of one of its customers. Reported in the media and on social networks, this shocking death was immediately reminiscent of the death of Georges Floyd in the US and triggered protests against Carrefour across Brazil.
Stifel also underlines that Brazil is Carrefour's main growth driver, representing 16% of 2020 sales and 25% of EBIT.
Stiffel says that it is difficult to accurately assess the potential risk at this stage and the analyst monitoring the share maintains a target price of 20 euros and says that even if Carrefour's value in Brazil falls, the stock will still have upside potential.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.