Greenyard: "A tough year", Berenberg cuts to "Hold"
29/08/2018 07:53
** Berenberg downgrades Belgian frozen foods co Greenyard
GREENY.BR to "hold" from "buy"
** Broker says 2019 REBITDA fall of 25 pct is now expected,
citing failed takeover of Dole, extreme weather conditions and
listeria-related recall
** Berenberg cuts PT by 21.8 pct to EUR 9.00
** Broker sees challenging pricing competition, with peers
in Germany and Belgium acting with increased price aggression
** "Management is acting to de-lever, including capex
rationalisation, working capital optimisation and a portfolio
review. This may result in disposals, likely focused on non-core
and real estate assets", says broker
** Berenberg expects a conservative EUR 75 mln inflow from
disposals in FY 2019/2020, with net debt/EBITDA peaking at 3.4x
in FY 2019
((RM: clement.martinot.thomsonreuters.com@reuters.net))