Carrefour: Oddo remains Neutral before trading update
(CercleFinance.com) - On Monday Oddo confirmed its "neutral" rating on the Carrefour stock, along with a target price of 19 euros, with the group preparing to publish its first-quarter sales figures.
The broker expects a difficult commercial start to the year, with sales up just 0.4% in organic terms. Regarding different geographical areas, Oddo expects sales to decline 0.9% in organic terms in France, with hypermarkets significantly underperforming, while it forecasts a 0.1% fall in Europe, where competitive pressures in Italy and Spain set to continue, albeit with 4.9% growth in Latam.
The broker adds that the share's 11% discount relative to its peers in 2019 seems to make sense, given the execution risks behind its transformation plan and the group being under strong operational pressure in first half of 2018.
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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.
The broker expects a difficult commercial start to the year, with sales up just 0.4% in organic terms. Regarding different geographical areas, Oddo expects sales to decline 0.9% in organic terms in France, with hypermarkets significantly underperforming, while it forecasts a 0.1% fall in Europe, where competitive pressures in Italy and Spain set to continue, albeit with 4.9% growth in Latam.
The broker adds that the share's 11% discount relative to its peers in 2019 seems to make sense, given the execution risks behind its transformation plan and the group being under strong operational pressure in first half of 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.