JPM optimistic on UK food retail, more picky with EU names

Jeronimo Martins SGPS SA

28/11/2024 07:55

** J.P.Morgan says European food retail looks more balanced
going into 2025, seeing particularly constructive growth in
Britain while being more picky with EU stocks
    ** "The US, Belgium & France appear the most pressured
markets currently, whilst the UK remains relatively visible" -
JPM
    ** The British market's "rational" behaviour supports
margins, cash flow and capital return visibility, it says,
upgrading Tesco  TSCO.L  and Sainsbury  SBRY.L  to "overweight"
from "underweight"
    ** Both stocks are also on JPM's positive catalyst watch
ahead of the important end-of-year holiday season
    ** It is most cautious of U.S.-exposed Ahold Delhaize
 AD.AS  and France's Carrefour  CARR.PA , both rated
"underweight", predicting a disappointing 2025 outlook for them
    ** It sticks to "overweight" rating for Jeronimo Martins
 JMT.LS  and Colruyt  COLR.BR , saying they remain "price
setters in their respective markets"

 (Reporting by Jakob Van Calster)
 ((Jakob.vancalster@thomsonreuters.com))