Jeronimo Martins rises as JPM double upgrades stock

Jeronimo Martins SGPS SA

29/04/2024 09:19

** J.P.Morgan double upgrades Jeronimo Martins  JMT.LS  to
"overweight" from "underweight", saying the shares are due a
re-rating after a recent decline in the shares
    ** The Portuguese food retailer's  JMT.LS  shares rise
around 3.6%, cutting YTD losses to 14.2%; they are among the
best performers on the pan-European STOXX 600  .STOXX 
    ** JPM says that after a "rather sound" Q1, it is assuming
underlying volume acceleration at the group's Polish unit
Biedronka, and more muted margin contraction in the year
    ** "We estimate Biedronka LFLs and Margins to trough into
the second and third quarter to become an inflection point," it
says
    ** JPM adds that Portugal and Colombia, where the trough has
become evident, also contribute to the overall earnings upgrade,
as it hikes its estimates by 5-10%
    ** It says Jeronimo and Belgium's Colruyt  COLR.BR  have
more room to manoeuvre with gross margins than peers due to
their lower prices, and thus more control over earnings
    ** Jeronomo Martins' shares are on track for their best day
since late October if gains hold

 (Reporting by Jakub Olesiuk)
 ((jakub.olesiuk@thomsonreuters.com))