Carrefour: Oddo adjusts forecasts, still a buyer
(CercleFinance.com) - Sales (at current exchange rates) inched up 0.
1% to 21,743 million euros as reported in Q4 2019. Quarterly organic growth reached 2.9% (against +2.1% expected). LFL growth reached 3.1%, i.e. 1% above Oddo's forecast of 2.1% growth.
The broker said that after a weak Q3 last year (LFL +1.9%), the group has returned to growth of around 3% (as in Q1 and Q2 2019), thanks to performance in Brazil and Spain (+7.6% LFL and +1.2% respectively).
Sales in France fell short of the broker's estimates at 10.3 billion euros, down 2.4% as reported and down 0.9% LFL (0% expected).
Oddo has adjusted its 2019 pro-forma EBIT estimates by 1% from 2,065 million euros to 2,080 million euros, considering that it expects 15% growth in EBIT in France to 532 million euros, it added.
Oddo confirms its Buy rating on the share, with a target price of 20 euros (about 30% upside), saying that the share has fallen by 7% over the past three months, based on fears relating to social unrest and strikes in France.
Copyright (c) 2020 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.
1% to 21,743 million euros as reported in Q4 2019. Quarterly organic growth reached 2.9% (against +2.1% expected). LFL growth reached 3.1%, i.e. 1% above Oddo's forecast of 2.1% growth.
The broker said that after a weak Q3 last year (LFL +1.9%), the group has returned to growth of around 3% (as in Q1 and Q2 2019), thanks to performance in Brazil and Spain (+7.6% LFL and +1.2% respectively).
Sales in France fell short of the broker's estimates at 10.3 billion euros, down 2.4% as reported and down 0.9% LFL (0% expected).
Oddo has adjusted its 2019 pro-forma EBIT estimates by 1% from 2,065 million euros to 2,080 million euros, considering that it expects 15% growth in EBIT in France to 532 million euros, it added.
Oddo confirms its Buy rating on the share, with a target price of 20 euros (about 30% upside), saying that the share has fallen by 7% over the past three months, based on fears relating to social unrest and strikes in France.
Copyright (c) 2020 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.