(CercleFinance.com) – Casino gains more than 2% in Paris, benefiting from a positive analysis from Invest Securities.
The analysis office indicates this morning that Casino completed a very difficult period in France with the 1st quarter of 2022, with lost market share and specific exposure to the consequences of the health crisis.
However, since the 3rd quarter of 2021, it has gradually regained ground. Negative in LFL, from -4.3% in Q3 then -3% in Q4, production improved again in Q1, with a decline in LFL sales in France limited to -1.6%’ indicates Invest Securities.
“Most formats remain negative, however, with declines of between -1.1% for hypermarkets and -3% for Monoprix. Internationally, the growth momentum is accelerating (+9.7% in LFL with inflation) in a Latam zone with renewed momentum. Thus, Casino group sees its growth in Q1 sales start again clearly at +3.2% in LFL (Carrefour +3.4%) ‘adds the analyst.
‘ At the same time, and even if group EBITDA remained flat over the past quarter, as in annualized data, general liquidity improved sharply, by €569m driven by the turnaround in WCR. The return of inflation should strengthen the generation of FCF and turn Q2 sales growth back into positive territory ‘.
The analyst believes that at this stage, there are still many uncertainties about the viability of BM Casino, but he believes that the outlook on an opinion maintained in the immediate future at neutral, is becoming positive. He adjusts his target price to 18.5 E (against 18 E).
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