Cedric Rossi

CECONOMY: Deteriorating consumption and fewer back-margins prompt profit warning | SELL | EUR2 VS. EUR3

Deteriorating consumption and fewer back-margins prompt profit warning

Ceconomy has cut its FY guidance to reflect a rapidly deteriorating consumer environment in Central and Eastern Europe. With consensus 42% above the new guidance for 2022 and still set to cut its 2023 estimates after the FY results in December while many other dark clouds are gathering, we reiterate our Sell rating with a new TP of EUR2.

Metro is a holding company. Through its subsidiaries, Co. is engaged in retail and wholesale. Co.'s operations are divided into four divisions: Metro Cash & Carry, Real, Media-Saturn and Galeria Kaufhof. The Metro Cash & Carry division operates in the cash and carry sector in Europe, Asia and Africa. The Real division is a hypermarket operator in Germany where it operates both stationary stores and an online store. The Media-Saturn division provides an assortment of brand products in consumer electronics retailing. The Galeria Kaufhof division operates department stores in Germany and Belgium. Co. is also a property manager through METRO PROPERTIES GmbH & Co. KG.

Bryan Garnier
Bryan Garnier

Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.

Cedric Rossi

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