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Balanced Hold Rating Amid Uncertainties for Koninklijke Ahold Delhaize N.V.

Balanced Hold Rating Amid Uncertainties for Koninklijke Ahold Delhaize N.V.

Izabel Dobreva, an analyst from Morgan Stanley, maintained the Hold rating on Koninklijke Ahold Delhaize N.V. (0RI8Research Report). The associated price target remains the same with €38.60.

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Izabel Dobreva’s rating is based on the mixed performance and outlook of Koninklijke Ahold Delhaize N.V. The recent fourth-quarter call highlighted a decline in the U.S. margin and a guidance on earnings per share that was softer than expected, which has concerned the market. The U.S. margin miss and lack of additional details on the European operations of Profi Rom have contributed to uncertainty. While the projected U.S. margin by 2025 aligns with sell-side consensus, there are concerns about potential downside risks if U.S. volumes do not recover as anticipated.
Moreover, while the European segment shows strong underlying momentum with impressive margin growth, it may not be enough to offset the uncertainties in the U.S. market. The stock has had a strong performance previously, and without clear catalysts for earnings upgrades, it might be poised for a pause. Therefore, given these factors, a Hold rating reflects a balanced view of potential risks and opportunities for Koninklijke Ahold Delhaize N.V.

In another report released today, Bernstein also maintained a Hold rating on the stock with a €32.00 price target.

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