Analyst Andrew Wade of Jefferies maintained a Hold rating on B&M European Value Retail SA, with a price target of p305.00.
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Andrew Wade’s rating is based on several factors, including B&M European Value Retail SA’s recent performance and strategic initiatives. The company reported a decline in like-for-like sales in the UK for the second quarter, which was a slowdown compared to the first quarter and fell short of expectations. This decline was particularly noted in the fast-moving consumer goods (FMCG) segment, although there was some growth in volume and value in general merchandise.
To address these challenges, B&M has initiated several measures aimed at improving performance, such as reducing prices on key FMCG items, enhancing promotional activities, and optimizing product ranges. While these actions are promising, their full impact is expected to take 12 to 18 months to materialize. Consequently, Andrew Wade has given a Hold rating, reflecting a cautious outlook as the company works to stabilize and potentially return to growth.