The poor guidance for FY18/19 has caught almost everybody by surprise (although our earnings estimates were below the consensus). There seems to be no end to Ceconomy’s struggles in its core market of Germany. We do not see any growth trigger for the stock price unless the new CEO (who is yet to be hired) shares a convincing performance turnaround plan. We have slashed the earnings and target price for the stock.
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
No end to the misery
The poor guidance for FY18/19 has caught almost everybody by surprise (although our earnings estimates were below the consensus). There seems to be no end to Ceconomy’s struggles in its core market of Germany. We do not see any growth trigger for the stock price unless the new CEO (who is yet to be hired) shares a convincing performance turnaround plan. We have slashed the earnings and target price for the stock.