Berenberg cuts Hornbach to 'hold' on worse-than-expected guidance

Hornbach Baumarkt AG

22/05/2023 08:14

** Berenberg downgrades its rating on Hornbach  HBH.DE  to
"hold" from "buy", citing the German DIY store group's
worse-than-expected guidance
    ** The broker says Hornbach's guidance of core profit to be
down 5% to 15% in FY 2023/24 is about 9% below consensus
expectations
    ** Berenberg expects a flat-to-negative top-line growth this
year, given the higher-than-expected drop in basket sizes
    ** It forecasts Hornbach's revenue to decline 2.5% to about
6.1 billion euros, while adjusted EBIT to fall 15% to 247
million euros
    ** Although not a direct peer to Hornbach, the broker flags
Home Depot's  HD.N  guidance of 2-5% fall in revenue, which
signals downside risk
    ** The broker also cuts its target price for Hornbach by 28%
to 90 euros
    ** Out of 5 analysts that cover Hornbach, four rate the
stock "strong buy" or "buy", and ​one analyst rates it "hold"


 (Reporting by Tristan Veyet)
 ((Tristan.chabba@thomsonreuters.com))