B&M European Value Retail SA: Hold Rating Amid Mixed Financials and Strategic Caution

Analyst Andrew Wade of Jefferies maintained a Hold rating on B&M European Value Retail SA (BME – Research Report), retaining the price target of p305.00.

Andrew Wade’s rating is based on a combination of factors including B&M European Value Retail SA’s financial performance and strategic outlook. The company reported a FY25 EBITDA at the higher end of its guidance range, indicating stable profitability despite a slight decline in operating profit and a significant drop in free cash flow. The increase in UK margins suggests some operational improvements, but the overall financial results were mixed.
Looking ahead, the appointment of a new CEO, Tjeerd Jegen, brings potential for strategic changes, although the current outlook remains cautious. The business model is considered robust, with initiatives planned to address underperformance in certain segments. However, the impacts of higher costs and taxes are already factored into the FY26 consensus, leaving limited room for upside surprises. These elements collectively contribute to the Hold rating, reflecting a balanced view of potential risks and opportunities.