Casino: Oddo initiates coverage as a seller

(CercleFinance.com) - Oddo initiates its coverage of the Casino stock with an "Underperform" rating and a target price of 6.
4 euros.

Casino and Rallye (its reference shareholder) are facing financial deadlines for which the only way out, given modest operational performance, is a massive plan to sell off many assets. Uncertainty about execution and macro makes us cautious, the analyst said.

Oddo reports that the group has a number of monetisable assets: 1/ Latam (valued at E1.7bn), 2/ Cdiscount (CNOVA) (E1.2bn), 3/ GreenYellow (E0.2bn), as well as 4/ real estate (E1. 3bn) and 5/ non-performing shops (E0.5bn), i.e. total assets of E4.8bn, against gross debt (excluding IFRS 16) that should reach E5.5bn by the end of 2022.

Naturally, these divestments are not all easy, as some assets are listed on the stock exchange, while others will require a longer process, Oddo points out.


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