Carrefour
Note: This is a daily stock update and the information stands true as of 05/11/24, 09:00 CET.
Company Update:
According to BBG sources, the company is studying options to boost its valuation. These options include asset disposal, partnership or an acquisition or an operational reorganization. But the group is also said to be considering a full sale or selling a significant stake to an interesting suitor ((industry or PE). Company ADR rose as much as 9.5% and ended up 7.6%.
Expert Opinion:
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Company Update:
According to BBG sources, the company is studying options to boost its valuation. These options include asset disposal, partnership or an acquisition or an operational reorganization. But the group is also said to be considering a full sale or selling a significant stake to an interesting suitor ((industry or PE). Company ADR rose as much as 9.5% and ended up 7.6%.
Expert Opinion:
Carrefour is indeed extremely cheap when compared to the rest of the industry. Valuation gap to the rest of the sector is excessive. I believe the management did an excellent job in a difficult French environment, as highlighted by the difficulties of Casino and Auchan. Yet share is down 10% YTD and the valuation is just too cheap and I stick to my buy rating. I expect a significant rerating over the next few months if indeed all options to extract value are contemplated. Note that an outright sale to a foreign investor (especially non-European) could face a reluctant government.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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