In a report released today, Andrew Wade from Jefferies maintained a Hold rating on B&M European Value Retail SA (BME – Research Report), with a price target of p305.00.
Andrew Wade’s rating is based on a combination of factors including recent developments and market conditions. B&M European Value Retail SA recently reduced its EBITDA guidance for FY25 by approximately 3%, following a lack of sustained improvement in UK like-for-like sales after a temporary boost in December. This unexpected adjustment in guidance has raised concerns about the company’s ability to maintain its growth trajectory.
Additionally, the announcement of CEO Alex Russo’s upcoming retirement adds an element of uncertainty regarding the company’s future leadership and strategic direction. While the stock is trading at a noticeable price-to-earnings discount, the unexplained weakness in like-for-like sales and the potential for strategic changes under new leadership contribute to a cautious outlook, justifying the Hold rating.
In another report released today, Morgan Stanley also upgraded the stock to a Hold with a £3.10 price target.
Based on the recent corporate insider activity of 13 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BME in relation to earlier this year.