Carrefour initiated with a Neutral at Goldman Sachs

Goldman Sachs analyst Richard Edwards initiated coverage of Carrefour with a Neutral rating and EUR 20.5 price target as part of the firm’s broader research note on Supermarkets in Europe. The company offers stable French market share, though an intensely competitive grocery market means profitability in France has historically been low relative to the rest of the group, the analyst tells investors in a research note. Goldman Sachs adds that Carrefour’s Latin America business has recently faced several headwinds, particularly with food prices falling into deflationary territory following a sharp contraction in local raw material prices year-to-date.