RBC Kicks Off Jerónimo Martins Coverage at Outperform Amid Long-term Growth Opportunity
RBC Capital Markets initiated its coverage of Jerónimo Martins SGPS (JMT.LS) with an outperform rating, viewing the valuation as "undemanding" for the long-term growth opportunity offered by the Portugal-based food distributor and retailer's largest business, Biedronka. "We think JMT's shares have been challenged in recent years given a tough competitive backdrop in Poland, margin pressures and worries around Biedronka's longer-term expansion potential. We believe these concerns are overdone," analysts said Monday. "The shares are down c.15% so far this year, given a tougher outlook and competitive pressures. Even so, Biedronka seems to be succeeding at holding onto market share and margin, whilst still below historical levels, is showing some signs of improvement (c.+10bps yoy in Q1)." The research firm expects Jerónimo Martins to see a double-digit earnings compound annual growth rate over the 2025 to 2028 period, noting Biedronka's growth potential over the long term in Poland and in the wider Central and Eastern European market. "Space expansion stories, which can propel a stock, are a rarity in retail these days and as such, we see this as a good entry point for the.
RBC Capital Markets initiated its coverage of Jerónimo Martins SGPS (JMT.LS) with an outperform rating, viewing the valuation as "undemanding" for the long-term growth opportunity offered by the Portugal-based food distributor and retailer's largest business, Biedronka. "We think JMT's shares have been challenged in recent years given a tough competitive backdrop in Poland, margin pressures and worries around Biedronka's longer-term expansion potential.
We believe these concerns are overdone," analysts said Monday. "The shares are down c.15% so far this year, given a tougher outlook and competitive pressures.
Even so, Biedronka seems to be succeeding at holding onto market share and margin, whilst still below historical levels, is showing some signs of improvement (c.+10bps yoy in Q1)." The research firm expects Jerónimo Martins to see a double-digit earnings compound annual growth rate over the 2025 to 2028 period, noting Biedronka's growth potential over the long term in Poland and in the wider Central and Eastern European market. "Space expansion stories, which can propel a stock, are a rarity in retail these days and as such, we see this as a good entry point for the.