Carrefour: UBS maintains buy rating
(CercleFinance.com) - This morning UBS has confirmed its buy rating advice on the share of French retailer Carrefour, developing another argument - that of "hidden value" within the group.
The broker maintains its 12-month target price at 23.5 euros, suggesting upside potential of almost 40%.
In this new report, UBS does not focus on improving profitability and cash consumption that Alexandre Bompard wants to drive, even though these arguments remain valid.
Note that at present it is not a question of reducing the group's shareholdings or selling them. However, if that were the case, UBS speculates, and while value creation represents strong demand from shareholders, the attractive valuation of Carrefour's other businesses would become clear. Analysts calculate that excluding Atacadão and Carmila, Carrefour would be trading at a P/E of 11.4x (hence a discount of about 35% relative to the CAC 40), or 7.3x once adjusted for cash.
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.
The broker maintains its 12-month target price at 23.5 euros, suggesting upside potential of almost 40%.
In this new report, UBS does not focus on improving profitability and cash consumption that Alexandre Bompard wants to drive, even though these arguments remain valid.
Note that at present it is not a question of reducing the group's shareholdings or selling them. However, if that were the case, UBS speculates, and while value creation represents strong demand from shareholders, the attractive valuation of Carrefour's other businesses would become clear. Analysts calculate that excluding Atacadão and Carmila, Carrefour would be trading at a P/E of 11.4x (hence a discount of about 35% relative to the CAC 40), or 7.3x once adjusted for cash.
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.