Carrefour: Invest Securities downgrades to sell
(CercleFinance.com) - In a brief report issued on Thursday, in reaction to the publication of Carrefour's Q1 earnings, Invest Securities has downgraded its "neutral" rating on the stock to “sell”.
The analyst who monitors the stock now recommends investors sell it and has also cut the corresponding target price from 17.2 euros to 15.4 euros, citing "a more complicated, if not dangerous fiscal year."
Given Q1 sales and the risk of prolonging very weak trends, at least over the first half of the year, 2018 cannot be considered as a year of transition, the broker believes, while considering that the configuration has already been postponed to 2019.
The broker - which has also cut its 2018 Ebit forecast by 200 million euros to 1.8 billion euros - fears delays in starting up the Bompard plan - at least concerning the cost reduction component, especially given the social climate at the retailer.
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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 analyst who monitors the stock now recommends investors sell it and has also cut the corresponding target price from 17.2 euros to 15.4 euros, citing "a more complicated, if not dangerous fiscal year."
Given Q1 sales and the risk of prolonging very weak trends, at least over the first half of the year, 2018 cannot be considered as a year of transition, the broker believes, while considering that the configuration has already been postponed to 2019.
The broker - which has also cut its 2018 Ebit forecast by 200 million euros to 1.8 billion euros - fears delays in starting up the Bompard plan - at least concerning the cost reduction component, especially given the social climate at the retailer.
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.