'Inflation tailwind ending' - Degroof cuts Colruyt to 'hold'

Colruyt NV

09/04/2024 09:08

** Degroof Petercam downgrades Colruyt  COLR.BR  to "hold"
from "buy" as it expects the favourable inflation conditions to
come to an end for the Belgian supermarket chain 
    ** The brokerage sees strong FY 2023/24, but expects limited
earnings growth in the coming years as food CPI in Belgium drops
below general CPI
    ** "Looking at the relatively small price gap between
Colruyt prices and the prices of its competitors we see only
limited room for further margin recovery at Colruyt," it adds
    ** Degroof says Colruyt unlocked most of the hidden value
especially through the sale of Parkwind, and most streamlining
has been done thanks to the simplification of its structure
    ** Out of 10 analysts covering Colruyt, three rate the stock
"strong buy" or "buy", five "hold", and two "strong sell" or
"sell"
    ** The stock is down around 2% in morning trade

 (Reporting by Michal Aleksandrowicz)
 ((michal.aleksandrowicz@tr.com))