Maisons Du Monde slips as profit warning reverberates

Maisons du Monde SA

11/10/2023 10:42

** Shares in Maisons du Monde  MDM.PA  drop around 5%, with
analysts saying the French home decor retailer is still under
pressure after it issued a profit warning earlier this week, and
pointing to a rating cut by Exane BNP 
        ** The stock hit its all-time low on Tuesday but later
pared losses to close 0.9% higher
  
    ** Exane BNP cut the stock to "neutral" from "outperform"
citing depressed household consumption and fierce competitive
environment blurring visibility
    ** However, a new strategic plan, which will be presented in
Q1 2024, might be a positive catalyst, Exane says
    ** Midcap Partners ("sell") says it is too early to say that
the worst is behind for MDM
    ** The brokerage says the firm's conference call did little
to reassure and the group's underperformance suggests it is
losing market share
    ** New strategic plan might disappoint, Midcap adds 
    ** "Given the current environment, the group is likely to
adopt cautious estimates leaving little space for investor
enthusiasm," says the brokerage

 (Reporting by Michal Aleksandrowicz)
 ((michal.aleksandrowicz@tr.com))