UniCredit Bank Reiterates its HOLD Rating on Casino Guichard Perrachon

October 10 00:00 2011

LONDON, October 10 (RainbowNewsLine.com) – Analysts at UniCredit Equity Research have reiterated their HOLD rating on the shares of Casino Guichard-Perrachon (CO. FP). The target price is set to €75.00

The analysts, in a research note published this morning, mention that the company is likely to report continued weakness in sales in France and a robust international performance for Q3. The company is scheduled to report its Q3 sales on October 12. The analysts’ expectations are as follows:

  • The forecast of group sales stood at €8.7 billion, Casino is believed to be combining 43% of CBD from 3Q and Big C in Thailand Carrefour from 1Q’11.
  • Casino experienced a weak summer in France; like-for-like ex petrol for Hypers was forecasted with a negative 2% while due to closing Sunday openings in Paris, Fanprix will endure to suffer.
  • Subsequent announcements of sales reports by Casino’s listed subsidiaries like CBD, Big C & Exito will add to the improvement in transparency.

According to the financial statements, the sales are expected to increase at a diminishing rate; the yoy is expected to continue increasing whereas the P/E ratio continues to fall from 2011E to 2013E.  The analyst believes the only highlight for investment is the robustness of 2011E earnings due to the international business. Improved French performance can bring a turnaround to make the stock trigger, the analysts add.

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