Barclays upgrades Jeronimo Martins on long-term growth prospects

Jeronimo Martins SGPS SA

05/02/2024 08:13

** Barclays upgrades Jeronimo Martins  JMT.LS  to
"overweight" from "equal-weight", saying the Portuguese retailer
has attractive long-term growth prospects
    ** The broker notes the stock has de-rated "significantly"
since mid-2023 on concerns around near-term prospects in Poland
and Colombia 
    ** "We think these concerns are overdone and see the around
20% discount to historical multiples ad an attractive
entry-point," it says
    ** Barclays says like-for-like sales growth is set to slow
amid food disinflation, but volume growth and store roll-out
should support growth
    ** The brokerage expects Jeronimo Martins to deliver another
year of double-digit EPS growth in FY24
    ** Out of 23 analysts that cover Jeronimo Martins, 15 rate
the stock "strong buy" or "buy"​, four "hold", and four​ "strong
sell" or "sell"
    ** The Jeronimo Martins shares are up 2% in early trading

 (Reporting by Matteo Allievi)
 ((Matteo.allievi@thomsonreuters.com))