Research Tree provides access to ongoing research coverage, media content and regulatory news on McKesson Corporation.
We currently have 0 research reports from 0
McColls has announced 2 key strategic developments today, with a new Morrisons supply partnership and the extension of its bank facilities. Conclusion of these vital negotiations represents a significant milestone, and allow management to focus on a new and exciting execution phase as it pivots towards a food-led convenience offer. It will also facilitate the delivery of sustainable profitable growth at a time when the importance of neighbourhood stores has never been greater. The news should be received well by investors.
Companies: McColl's Retail Group Plc
Casino’s parent Rallye has announced the commencement of a debt re-profiling process under the protection of French courts. Casino is not included in this process (there is no cross default provision). In the short-term, Casino should get a breather, as Rallye would freeze creditor payments (hence, does not need dividend payments from its subsidiary). Even in the mid/long-term, Casino should be better placed relatively (we discuss some scenarios below). Moreover, we repose our faith in Casino’s business model/FCF generation prospects in France. ‘Buy’ reiterated.
Companies: Casino, Guichard-Perrachon SA
Casino has lost more than 50% of its market value over the past ten months. We spoke with the group’s CFO to get a clearer perspective about the pressing issues, especially the strength of the French operations, high leverage and some governance-related matters. There is no doubt the stock is controversial and poses a higher risk vs most European grocers. However, the business is still robust and the issues are being addressed. In essence, Casino is a screaming ‘Buy’ even after factoring in all concerns.
Tesco has reported a strong trading performance, largely driven by the UK and ROI. Once again, online was a key growth engine with c.80% sales growth. Despite an increase in the COVID-19-related costs (+£85m to £810m for FY20/21), the company has maintained annual retail operating profit (excluding the business rate payment) to be at least equal to the previous year. We maintain a positive outlook for the stock’s valuation.
Companies: Tesco PLC
Casino’s Q4 and FY20 performance was stronger than our expectations. Management’s success in improving profitability and its progress in new businesses are noticeable developments. However, we do not expect the performance of French hypers to return into the black in FY21. Despite a few hiccups and further needs to reduce debt, we continue to believe in the attractiveness of the stock’s valuation.
Companies: Casino Guichard Perrachon (CO:EPA)Casino, Guichard-Perrachon SA (CO:PAR)