Ahold Delhaize: shares slip after UBS 'sell' recommendation

(CercleFinance.com) - Ahold Delhaize shares are down 1% on Wednesday after UBS issued a "sell" recommendation on the stock, citing "structural" margin pressures and "growing" challenges to the model.


In a note to clients, the broker said that the Dutch retailer is facing increasing competitive intensity from both regional players (Market Basket, ShopRite, Wegmans and Publix) and discounters.

In addition, the stock's 8%-9% attractive free cash flow yield is unlikely to return any time soon, it said.

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.