B&M European Value Retail SA, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Andrew Wade from Jefferies maintained a Hold rating on the stock and has a p260.00 price target.
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Andrew Wade’s rating is based on several factors, including the challenging financial performance of B&M European Value Retail SA. The company’s first-half revenue growth was modest, with a slight increase in like-for-like sales, but the adjusted EBITDA and earnings per share saw significant declines. Despite a new CEO expressing optimism about restoring positive sales trends and improving EBITDA margins, the recent changes in management, including the departure of key directors, indicate instability.
Furthermore, early third-quarter like-for-like sales are at the lower end of expectations, which adds to the cautious outlook. While the management has maintained its full-year EBITDA guidance, the slow pace of improvement in trading performance and the need for more substantial evidence of recovery contribute to the Hold rating. The valuation remains low, but without clear signs of a turnaround, the recommendation remains cautious.
Based on the recent corporate insider activity of 21 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.