(ABM FN-Dow Jones) Ahead of the quarterly figures, UBS has reiterated its sell recommendation for Ahold Delhaize with a price target of EUR 27.00. This emerged from a report from the Swiss bank on Monday.
Ahold Delhaize invests more in price reductions at America’s Stop & Shop. The chain has 1 billion dollars for this and the pace will be accelerated until 2025, with the necessary risks for the American margins. “This is the reason for our sell advice,” said UBS.
UBS is positive about the European margins, but they will not be enough to absorb the pressure in the US, the analysts think.
UBS will therefore pay particular attention to the development of American margins in the coming quarterly figures. The bank is also curious if Ahold Delhaize will say anything about the impact of the storms on the American Food Lion division.
For the third quarter, UBS estimates that Ahold Delhaize achieved an underlying operating profit of 821 million euros, good for a margin of 3.8 percent.
Ahold Delhaize shares fell about 4 percent to 29.91 euros on Monday.
Source: ABM Financial News
ABM Financial News is a provider of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make specific investments.
Comments
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October 14, 2024 11:13
It is good that advice is given before the figures and not after. Personally, I hope they are wrong.
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October 14, 2024 11:28
When exactly will the numbers come?
20
50
100
2024-10-14 08:18:00
#UBS #reiterates #sell #advice #Ahold #Delhaize
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