Jeronimo Martins: shares drop on UBS downgrade

(CercleFinance.com) - Shares in Jeronimo Martins, Portugal's largest retailer, have fallen by as much as 3% on Thursday after UBS downgraded the stock from "buy" to "neutral".


In a note to clients, the broker cited a "tougher outlook" and "full valuation." "We expect a tougher outlook for 2020-21 with cost-related margin pressure in Poland," UBS said in the note.

UBS said it has cut its 2020-2021 earnings estimates by 4% and trimmed its target price to 15.5 euros from 16 euros.

Jeronimo Martins shares were down 2.3% at 14.4 euros after these comments, while the main Portuguese index, the PSI, was trading 1.2% lower.

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