Analyst Andrew Wade of Jefferies maintained a Hold rating on B&M European Value Retail SA (BME – Research Report), retaining the 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 company’s Q4 UK like-for-like sales showed a slight improvement compared to the previous quarter, performing better than consensus expectations and aligning with internal estimates. However, when adjusting for seasonal effects such as Easter, the like-for-like sales trend still indicates a decline, albeit a smaller one.
Despite the positive performance in France and a robust gross margin, there are concerns about the fast-moving consumer goods (FMCG) segment, which has shown weak performance. The company is taking steps to address these issues, but the market remains cautious about the need for potential price investments in this area. Additionally, while the expected EBITDA is above the midpoint of the guidance range, the upcoming CEO succession announcement adds an element of uncertainty, contributing to the Hold rating.
According to TipRanks, Wade is ranked #4054 out of 9350 analysts.