Jeronimo rises after UBS double upgrades to 'buy'

Jeronimo Martins SGPS SA

10/07/2024 09:25

** Shares of Jeronimo Martins  JMT.LS  rise 5% after UBS
double upgrades to 'buy' from 'sell' due to expected medium-term
margin recovery potential and attractive risk/reward profile
    ** The broker also raises the Portuguese food retailer's
target price by 24% to 23 euros 
    ** UBS says it sees early evidence of price competition
moderating in Poland as retailers have largely passed on the
April VAT hike
    ** The broker also sees consumer spending recovering and
opex pressure to start abating in 2025 as tailwinds for Jeronimo
    ** "It may take a while until margins inflect (around Q2
2025) but the worst seems behind us" the broker says
    ** Jeronimo Martins' shares lead the gains in the Portuguese
PSI index  .PSI20  and outperform the STOXX  .STOXX  index,
which rises 0.3%
    ** Including today's rise the stock has dropped by 14.37 %
YTD.​
   

 (Reporting by Joao Manuel Mauricio)
 ((JoaoManuel.VicenteMauricio@thomsonreuters.com))