In a report released today, Andrew Wade from Jefferies maintained a Hold rating on B&M European Value Retail SA, with a price target of p305.00.
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Andrew Wade has given his Hold rating due to a combination of factors influencing B&M European Value Retail SA’s recent performance. The company’s Q1 UK like-for-like sales growth was modest at 1.3%, falling short of expectations and only slightly positive despite favorable conditions such as seasonal boosts and the timing of Easter. This indicates a softer performance compared to previous quarters, with a notable decline in two-year like-for-like sales.
Moreover, challenges persist in the fast-moving consumer goods segment, where efforts to enhance the value proposition are ongoing. Additionally, average selling price deflation in general merchandise has resulted in a reduced trading gross margin, expected to stabilize from the second quarter onwards. Although the company is expanding with new store openings and a slight growth in France, the new CEO has identified significant opportunities for improving commercial and operational execution, suggesting that the company’s current strategies may need refinement to achieve stronger growth.
According to TipRanks, Wade is a 4-star analyst with an average return of 4.6% and a 56.59% success rate. Wade covers the Consumer Cyclical sector, focusing on stocks such as THG, B&M European Value Retail SA, and Greggs plc.