ODDO ups Mercialys as it sees benefits from restructuring at Casino, shares rise
04/09/2023 10:47
** Shares in French commercial real estate operator
Mercialys MERY.PA jump 2.8% after ODDO upgrades the stock to
"overweight" from "neutral" seeing favourable effects from
reduced exposure to troubled supermarket chain Casino CASP.PA
** The broker says the ongoing financial restructuring of
Casino will provide more visibility on the capacity of Mercialys
to collect rents and reduce Casino exposure
** Mercialys' CEO said the group has been only slightly
affected by Casino's problems to date, with no rent payment
default recorded, the broker says
** The first wave of stores changing hands under a May 2023
agreement with Intermarche will involve two stores Mercialys
owns in partnership with investors, bringing the number of
Casino stores owned by Mercialys down to 18 from 20
** The company does not envision rental concessions to
Casino, including for locations that "could be revived by other
operators", ODDO notes quoting Mercialys' CEO
** The stock is among the best performers of France's SBF
120 .SBF120 index
(Reporting by Pierre John Felcenloben)
((pierrejohn.felcenloben@thomsonreuters.com))