Carrefour: Invest Securities downgrades stock
(CercleFinance.com) - Invest Securities has downgraded Carrefour shares from "buy" to "neutral", having reduced its target price for them from 22.
4 euros to 20.8 euros, after reducing its earnings estimates for the French retail giant for both H1 and FY 2022.
The risk of deterioration in the fundamentals of the European economy in the face of food inflation that is both unprecedented and brutal is blurring visibility, the analyst says, pointing out that consumers are adjusting their spending in the face of constrained purchasing power.
The broker recognises that Carrefour remains moderately valued, trading at 11.7x its expected 2022 NAV, although notes that the downward pressure on stockmarket multiples is deteriorating its relative positioning.
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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.
4 euros to 20.8 euros, after reducing its earnings estimates for the French retail giant for both H1 and FY 2022.
The risk of deterioration in the fundamentals of the European economy in the face of food inflation that is both unprecedented and brutal is blurring visibility, the analyst says, pointing out that consumers are adjusting their spending in the face of constrained purchasing power.
The broker recognises that Carrefour remains moderately valued, trading at 11.7x its expected 2022 NAV, although notes that the downward pressure on stockmarket multiples is deteriorating its relative positioning.
Copyright (c) 2022 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.