Ahold Delhaize: shares drop after downgrade
(CercleFinance.com) - Ahold Delhaize shares fell on Monday after Jefferies downgraded the Dutch-based retailer from "buy" to "hold," saying its undervaluation has now become "less severe.
"
"Ongoing US consolidation provides excellent value creation opportunities for Ahold Delhaize over the mid term," Jefferies' analysts said in a research note.
"However, muted progress in the US margin backdrop, slowing support from net synergies and c.50% sector outperformance since the 2017 lows translate into less evident short-term upside," it added.
Jefferies also warned that downside risks may "re-emerge near term."
Ahold's shares are currently down 0.6% at under 20 euros in late-afternoon trading on Euronext Amsterdam. The shares have risen by about 9% so far this year.
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.
"
"Ongoing US consolidation provides excellent value creation opportunities for Ahold Delhaize over the mid term," Jefferies' analysts said in a research note.
"However, muted progress in the US margin backdrop, slowing support from net synergies and c.50% sector outperformance since the 2017 lows translate into less evident short-term upside," it added.
Jefferies also warned that downside risks may "re-emerge near term."
Ahold's shares are currently down 0.6% at under 20 euros in late-afternoon trading on Euronext Amsterdam. The shares have risen by about 9% so far this year.
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.