Casino: Oddo downgrades stock

(CercleFinance.com) - Oddo has downgraded its rating on the Casino stock from Buy to Neutral.

Having set a target price at 44 euros, it recommends taking profit, following the share's recent rise (+60% since it adopted its buy rating.
The broker believes that only an industrial solution for Casino could lead to the share price rising further.

Oddo says that an industrial solution (with Carrefour and/or Auchan) would balance debt levels for Rallye (at least 48 euros per Casino share is required), although this could take some time.

Carrefour denied (on 11/09) rumours about a potential project or bid for Casino. Oddo believes that additional potential does not compensate either the time factor involved, or the risks of execution.

Oddo also confirms its Reduce rating on Rallye.


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