Fielmann: Growth strategy introduces new risks - Berenberg cuts

Fielmann AG

14/02/2020 07:37

** Shares in German eyewear manufacturer Fielmann  FIEG.DE 
are seen down 3% after Berenberg cuts to "sell" from "hold"
    ** The broker says that the company's market share in
Germany looks vulnerable to disruption, with competition
increasing and volume growth decelerating
    ** Berenberg adds the Fielmann's investments to digitise and
modernise its business introduce new risks 
    ** "We fear much of this investment is catch-up to peers,
rather than truly pioneering," the broker says
    ** The brokerage sees risks to margin and cash flow, says
that elevated capex will now be a "permanent feature" of the
investment case, transforming Fielmann's cash profile
    ** Berenberg adds that with the stock rising back to
all-time highs, these risks do not look fully reflected in
valuation 

    
    

    
   
    
  

    

  
   


 




 ((Veronica.snoj@tr.com))