Carrefour: Invest Securities still on hold
(CercleFinance.com) - The broker believes that Carrefour has reached its FY targets.
It says the good news in results is the acceleration of sales growth in France in Q4, which reached +5.5% LFL.
The broker says that results are bang in line with the consensus, with a low in terms of adjusted EBIT (2.048 billion euros), considering the bonuses paid to employees in the management of the health crisis as current costs. Furthermore, Carrefour makes little reference to this crisis, it explains.
This apparent lack of hindsight regarding the health crisis raises concerns amongst analysts, while the company's message for 2021 is pretty upbeat. Their main question is to determine what will happen in France, and elsewhere, when figures will be faced with a particularly demanding reference base, faced with just a very gradual dilution of the costs relating to the pandemic, they add. The broker says that at this stage there is no question of adjusting earnings estimates (forecasting 2021 EBIT of 2.327 billion euros).
The broker confirms a neutral rating on the stock, with a target price of 15.20 euros. It is currently up about 1%, outpacing the CAC 40.
Copyright (c) 2021 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.
It says the good news in results is the acceleration of sales growth in France in Q4, which reached +5.5% LFL.
The broker says that results are bang in line with the consensus, with a low in terms of adjusted EBIT (2.048 billion euros), considering the bonuses paid to employees in the management of the health crisis as current costs. Furthermore, Carrefour makes little reference to this crisis, it explains.
This apparent lack of hindsight regarding the health crisis raises concerns amongst analysts, while the company's message for 2021 is pretty upbeat. Their main question is to determine what will happen in France, and elsewhere, when figures will be faced with a particularly demanding reference base, faced with just a very gradual dilution of the costs relating to the pandemic, they add. The broker says that at this stage there is no question of adjusting earnings estimates (forecasting 2021 EBIT of 2.327 billion euros).
The broker confirms a neutral rating on the stock, with a target price of 15.20 euros. It is currently up about 1%, outpacing the CAC 40.
Copyright (c) 2021 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.