Dia: a potential predator in Spain, Bryan Garnier says.
(CercleFinance.com) - Bryan Garnier maintains its "buy" recommendation on Dia shares, with a target price of six euros, expecting that the retailer will play an active role in the potential concentration of the highly fragmented Spanish market.
The brokerage firm explains that Spain's top 5 retailers have market share of less than 50%, which should lead the smaller players to struggle to fund the investments that are necessary to cope with the new "phygital" consumer's requirement (combination of digital experience and physical stores).
"This reality should lead to a consolidation of the market," the broker says, adding that Dia should act as a "predator" going forward.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The brokerage firm explains that Spain's top 5 retailers have market share of less than 50%, which should lead the smaller players to struggle to fund the investments that are necessary to cope with the new "phygital" consumer's requirement (combination of digital experience and physical stores).
"This reality should lead to a consolidation of the market," the broker says, adding that Dia should act as a "predator" going forward.
Copyright (c) 2017 CercleFinance.com. All rights reserved.