Carrefour upgraded by Deutsche Bank after successful repositioning

Deutsche Bank has upgraded French supermarket retailer Carrefour to ‘buy’ from ‘hold’

Deutsche said it believes the chain’s repositioning has worked and that the French margin erosion next year will be marginal relative to that implied by the current share price. In addition, the broker told clients that international returns should see steady growth through greater focus. Deutsche also said that far from being worried about recent changes to the Loi Galland, it sees it as a great opportunity for Carrefour to capitalize on its superior business model in a less restricted market. January changes to the Loi Galland allow retailers more scope to use extra funds to fuel price cuts.

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