(CercleFinance.com) – Barclays raised its price target on Carrefour on Wednesday, raising it from 20 to 22 euros in anticipation of a good start to the year from the distributor.
The research department – which maintains an ‘overweight’ recommendation on the stock – says it predicts an acceleration in sales in the first quarter, driven by both inflationary pressures and market share gains.
Barclays says it expects like-for-like growth of 5.5% for hypermarkets, 7.5% for supermarkets and 9.5% for convenience stores over the first three months of the year.
More generally, the analyst praises the strategic orientation put in place by the French retail giant.
‘We believe Carrefour continues to deploy the right strategy by increasing its private label penetration, transferring underperforming stores to franchisees, reducing its cost structure and developing new channels for profitable growth, such as the ‘retail media’, he explains.
“We believe this strategy not only benefits the group’s growth prospects and profit margins, but also improves its risk profile,” concludes Barclays.
Carrefour has planned to publish its first quarter sales on Tuesday April 25 after the Paris market closes.
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