Balanced View on B&M: Strong Price Competitiveness Offset by Execution Risks and Limited Near-Term Upside

Andrew Wade, an analyst from Jefferies, maintained the Hold rating on B&M European Value Retail SA. The associated price target remains the same with p175.00.

Andrew Wade has given his Hold rating due to a combination of factors relating to B&M’s pricing position and earnings outlook. His price-basket work shows that B&M has become materially more competitive versus Tesco compared with 2023–2024, with a wider price gap now than in those years, even if it has narrowed somewhat from the peak advantage seen in October 2025. He recognises that B&M’s sharper pricing and ongoing deflation versus a key competitor underscore a clear value proposition for customers. At the same time, he notes that the recent moderation in the price advantage and the pressure on like-for-like sales growth temper the near-term upside case.

Andrew Wade also judges that while B&M’s strategic direction appears sensible, execution risks and profitability rebuilding needs remain. Early third‑quarter trading is tracking towards the lower end of management’s like‑for‑like guidance range, which he interprets as putting current full‑year expectations under strain. He highlights that there is still a substantial EBITDA margin recovery to deliver, implying that much of the operational improvement story is already anticipated in the share price. Taken together, these positives and negatives lead him to a balanced view, supporting a Hold rather than a more decisive Buy or Sell stance.

In another report released on December 13, TR | OpenAI – 4o also downgraded the stock to a Hold with a p169.00 price target.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BME in relation to earlier this year.