Ceconomy’s strong Q1 performance was not a surprise. However, management’s announcement to suspend the FY20/21 outlook is an unavoidable dent in investor sentiment. We believe the company is well placed to sail through the tough times (courtesy a strengthening e-com proposition and healthy liquidity). In essence, there aren’t any major concerns regarding the company’s performance in the mid/long term. We maintain a positive stance on the stock’s valuation.
11 Feb 2021
A strong Q1 performance; uncertain outlook dampens investor sentiment
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A strong Q1 performance; uncertain outlook dampens investor sentiment
Ceconomy’s strong Q1 performance was not a surprise. However, management’s announcement to suspend the FY20/21 outlook is an unavoidable dent in investor sentiment. We believe the company is well placed to sail through the tough times (courtesy a strengthening e-com proposition and healthy liquidity). In essence, there aren’t any major concerns regarding the company’s performance in the mid/long term. We maintain a positive stance on the stock’s valuation.