Ahold Delhaize: Oddo says share is attractive

(CercleFinance.com) - Food retailer Ahold Delhaize has reported Q4 2019 net profit of 544 million euros, up 7% y-o-y.


Oddo says that these Q4 results are slightly above expectations, despite a US margin (-43 bp) that has been under more pressure than expected (-26 bp estimated).

It notes that EBIT, EPS and FCF are all above both expectations and its guidance.

The retailer plans to make significant capex in 2020, with an underlying operating margin that is close to its 2019 level and underlying EPS growth of around
5%.

The group's guidance is reassuring for 2020e, and Oddo says that is has raised its EPS expectations by 0.8% for 2020e, now expecting growth of 5.6%.

Following this publication, analysts confirm their buy rating on the share, along with a target price of 26 euros. It is confident in the group's ability to "manage its margins". The share remains attractive, trading at a 2.6% discount relative to its European peers based on its 2020 estimates.


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