Carrefour: Oddo BHF says group is adopting right strategy
(CercleFinance.com) - Ahead of Carrefour's Q1 2019 sales publication on 24 April, an analyst at Oddo BHF this morning confirms his "buy" rating on the share, expecting "satisfactory food" sales, although "challenging" in non-food.
The broker expects consolidated gross sales of 20 billion euros, -3.2% as reported, with an FX impact estimated at -3.4%, a calendar impact of -1.6% (e) and a petrol effect of -0.5% (e). Organic performances (+1.9% vs. 1.4% in Q4 2018) and LFL (+1.6% vs. +1.1% in Q4 2018) should be correct, despite a continuation in significant competition in the market and lower non-food sales at hypermarkets in general, Oddo expects.
Thus, the broker says that although these results should confirm that the group's strategy is the right one, they should also illustrate the need to accelerate reductions in non-food store surfaces - both in France and abroad.
Alongside this, the analyst confirms his target price of 20 euros, which represents upside potential of +19%.
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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 consolidated gross sales of 20 billion euros, -3.2% as reported, with an FX impact estimated at -3.4%, a calendar impact of -1.6% (e) and a petrol effect of -0.5% (e). Organic performances (+1.9% vs. 1.4% in Q4 2018) and LFL (+1.6% vs. +1.1% in Q4 2018) should be correct, despite a continuation in significant competition in the market and lower non-food sales at hypermarkets in general, Oddo expects.
Thus, the broker says that although these results should confirm that the group's strategy is the right one, they should also illustrate the need to accelerate reductions in non-food store surfaces - both in France and abroad.
Alongside this, the analyst confirms his target price of 20 euros, which represents upside potential of +19%.
Copyright (c) 2019 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.