Jeronimo Martins up after JPM reiterates 'overweight', seeing room for share gains

Jeronimo Martins SGPS SA

03/07/2025 09:28

** Shares of Jeronimo Martins JMT.LS rise more than 4% after J.P.Morgan reiterates its "overweight" rating, saying the stock has headroom to rally some 15% more driven by earnings upgrades and valuation re-rating

** The Portuguese food retailer's shares have gained around 20% YTD and rose 3.5% on Tuesday after Citi upgraded its rating to "buy" from "neutral"

** JPM says it sits a double-digit percentage above consensus for profits in FY25-27, driven by more bullish LFLs and margin assumptions for Poland's Biedronka and higher forecasts for the Colombian business

** It adds Jeronimo Martins has an appealing relative valuation, given expectations are very low compared to Polish rivals Zabka ZAB.WA and Dino

** Shares of Jeronimo Martins are among top performers on Europe's STOXX 600 index .STOXX

** Out of 23 analysts that cover Jeronimo Martins, 17 rate it "strong buy" or "buy", ​four "hold" and two​ "strong sell" or "sell" - LSEG data

 (Reporting by Tiago Brandao)

 ((Tiago.Brandao@thomsonreuters.com;))