In a report released today, Andrew Wade from Jefferies maintained a Hold rating on B&M European Value Retail SA (BME – Research Report), with a price target of p305.00.
Andrew Wade has given his Hold rating due to a combination of factors impacting B&M European Value Retail SA. The management of B&M is confident in their pricing strategy, emphasizing that there is no pricing issue despite a year of negative like-for-like sales. Their analysis shows a stable price gap compared to competitors like Tesco, and consumer perceptions of their pricing remain unchanged.
The ongoing weakness in like-for-like sales is attributed to several factors, including consumer cyclical effects, price investments, deflation in certain categories, and missed opportunities in in-store merchandising. Despite these challenges, the company is optimistic about achieving positive like-for-like sales in the fiscal year 2026. Additionally, while there has been some price competition from Asda, B&M’s management does not foresee a significant impact on their margins, which they aim to maintain in FY26.
Based on the recent corporate insider activity of 15 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.