CEE retailers: JPM flags trading down in H2 after V-shape recovery

Richter Gedeon Vegyeszeti Gyar Nyrt

01/07/2020 11:55

** JP Morgan says data suggests a V-shape recovery in Polish
retail so far in Q2, but adds trading down is a real future
possibility with incomes slowing 
    ** It sees May rebound in Polish retail sales, at 87% of
pre-COVID-19 levels, as possible temporary pent-up demand
    ** The brokerage downgrades Polish food retailer Dino
 DNP.WA  to "underweight" from "neutral" (PT 194 zlotys), as in
its view it is not as priced for that scenario
    ** Dino's peer Eurocash  EUR.WA  is also facing a tough Q2,
it adds
    ** JPM names Hungarian drug maker Gedeon Richter  GDRB.BU 
as its top pick, as it expects the antipsychotic Vraylar growth
story to continue after the Q2 slowdown as U.S. physicians
reopen offices
    ** It adds that Polish apparel retailer LPP  LPPP.WA 
remains its favourite discretionary with structural shift to
online, sees it emerging from the pandemic as a structurally
healthier business 

    


 ((karl.badohal@thomsonreuters.com))