Casino: Credit Suisse still concerned about balance sheet
(CercleFinance.com) - Maintaining its neutral rating, this morning Credit Suisse has cut its target price for the Casino share by 25% to 31.
65 euros.
This is approximately its current market price.
The already high debt level of the group's French businesses continues to increase, analysts worry. And while EBITDA has been improving since 2014, this is probably partly due to the sale of controlling interests in loss-making stores.
The risk is that the constraints on Casino's cash generation will force it to reduce its dividend, the main income of the Rallye holding company. This group has to refinance heavy debt - and for the moment, it is succeeding - although there is an increasing risk of liquidity.
Another negative factor is that the group's non-food e-commerce subsidiary, Cnova, continues to make losses.
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.
65 euros.
This is approximately its current market price.
The already high debt level of the group's French businesses continues to increase, analysts worry. And while EBITDA has been improving since 2014, this is probably partly due to the sale of controlling interests in loss-making stores.
The risk is that the constraints on Casino's cash generation will force it to reduce its dividend, the main income of the Rallye holding company. This group has to refinance heavy debt - and for the moment, it is succeeding - although there is an increasing risk of liquidity.
Another negative factor is that the group's non-food e-commerce subsidiary, Cnova, continues to make losses.
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.