UBS initiates Colruyt with 'buy' on strong cash position
22/05/2024 08:27
** UBS initiates coverage of Colruyt Group COLR.BR with a
"buy" rating, citing a strong cash position
** "COLR's strong pricing position and low cost operating
model supports its market share dominance with headroom for
margin accretion upon an improving macro outlook," it says
** The Belgian supermarket holds market leadership through a
steady 6%-14% price gap to full-line competitors, says UBS
analyst Hai Huynh
** UBS expects a revenue CAGR of 4.4% for 2024-2027, 3.1%
above VA consensus
** UBS sees cumulative excess cash flow post dividend
distribution of 1.3 billion euros over FY24e-FY26e, which should
allow for increased shareholder returns and further M&A
opportunities
** Out of 11 analysts covering Colruyt, 4 rate the stock
"buy", 5 "hold" and 2 a "sell" or "strong sell" rating
(Writing by Alban Kacher; Editing by Alexander Smith)
((alban.kacher@thomsonreuters.com))