JPM places Carrefour on negative catalyst watch, shares drop to bottom of Stoxx 600
BUZZ-JPM places Carrefour on negative catalyst watch, shares drop to bottom of Stoxx 600 ** Shares in Carrefour CARR.PA fall around 6.5% to the bottom of the European STOXX 600 .STOXX after JPMorgan put the stock on its negative catalyst watch ahead of the French retailer's H1 results
** The broker reiterates its "underweight" rating and cuts its PT by 10% to €9 per share ($10.35)
** JPM expects another earnings miss, in line with the company’s track record, even as recent strong share gains and investor positioning suggest markets are betting on a turnaround
** It sees muted y/y ROI growth and margin expansion in France off a very low base, with negative volumes weighing on margins in Brazil
** "The rest of Europe ain't great either," broker adds, highlighting Spain as the only bright spot for the company
** Shares on track for worst day since last June, trimming year-to-date gains to around 8% if losses hold
($1 = 0.8694 euros)
(Reporting by Jakob Van Calster)
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