Casino: 'no risk' - but 'no catalyst' either, Oddo says
(CercleFinance.com) - An Oddo BHF analyst announced on Tuesday morning that he has reduced his target price for the Casino group share from 38 euros to 33 euros, considering that its H1 2020 results should be correct: he foresees no risk on quarterly covenants, although neither does he see any catalysts for the share in the near term.
The broker says that paradoxically, despite H1 2020 results that will be correct and the easing of Rallye's financial pressure until the end of 2022, which will give Casino more leeway to execute its disposal plans (still estimated at 1.7 billion euros), it is difficult to imagine any significant rebound in the share price in the near term. The Casino share is paid in line with its European peers in terms of 2020e and 2021e P/Es, considering that it benefits from a 25% premium relative to Carrefour's valuation.
Oddo BHF therefore remains neutral on the stock.
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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 says that paradoxically, despite H1 2020 results that will be correct and the easing of Rallye's financial pressure until the end of 2022, which will give Casino more leeway to execute its disposal plans (still estimated at 1.7 billion euros), it is difficult to imagine any significant rebound in the share price in the near term. The Casino share is paid in line with its European peers in terms of 2020e and 2021e P/Es, considering that it benefits from a 25% premium relative to Carrefour's valuation.
Oddo BHF therefore remains neutral on the stock.
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.