Home > Analyse
Actualite financiere : Actualite bourse

Carrefour: UBS upgrades to buy, on Bompard plan

(CercleFinance.com) - UBS has upgraded its neutral rating on the Carrefour stock to buy.

Analysts welcome the "pragmatic and plausible turnaround plan" instigated by the French retailer's boss, Alexandre Bompard. The broker has raised its 12-month target price from 16.5 euros to 24 euros, meaning upside potential of around 25%.

According to analysts, the 2022 strategic plan presented by the former boss of Fnac Darty "is a playbook that goes back to food retail basics: leveraging scale to lower prices; generating cost efficiencies; improving inventory turns; and, applying strict capital discipline," the broker highlights in a report. Not to mention the defence of margins and cash generation.

The implementation of these measures should make Carrefour a better-valued group, UBS forecasts. Especially in France, the introduction of regulations on the sale of loss leading products falls at the right time, in that it will reduce competition opportunely.
Finally, according to UBS, Carrefour is currently one of the most undervalued shares in its sector in terms of enterprise value/sales (0.25x for 2018).

Copyright (c) 2018 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.