Casino: Invest Securities raises target price
(CercleFinance.com) - The analyst believes that Casino owes its sound consolidated figures in Q4 2020 (+8.
1% LFL sales growth) to performance in Latam, with business lackluster in France, as was the case in Q3 (+0.1% in LFL for Casino retail).
The broker says that in France Casino has therefore not benefited from the "windfall effect" of the pandemic in terms of its business, although it has had to bear associated costs and surcharges. In this unprecedented context, EBIT in France has resisted well, posting 688 million euros for retail in France, excluding C Discount, whose profitability profile is becoming clearer (EBIT of 53 million euros).
However, in Brazil, the group benefited from a buoyant economy, although FX factors weighed heavily. Overall, its financial constraints have eased slightly, with net debt virtually stable (excluding IFRS 5) of around 4 billion euros, mainly thanks to the improvement in Brazil's liquidity, the analyst added.
All said, the broker maintains its neutral rating on the stock, although has increased its target price to 26.4 euros (against 23 euros. The share is down almost 1.5% on Friday morning, underperforming the market by about 1%.
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