Zacks Investment Research cut shares of Companhia Brasileira de Distribuicao (NYSE:CBD) from a hold rating to a strong sell rating in a research note published on Thursday.
According to Zacks, “Companhia Brasileira has lagged the industry in the past three months, as it has been battling acute food deflation and a tough retail environment which remained hurdles in fourth-quarter 2017. During the quarter, net income tumbled year over year due to a slump in EBITDA margin, which resulted from lower margins at both Assai and Multivarejo. In fact, increased levels of deflation in food-at-home categories also marred comps at Multivarejo. Unfortunately, food deflation is expected to persist in 2018. Nonetheless, Companhia Brasileira’s sales rose year over year, courtesy of continued strength at Assai. Sales here surged owing to solid comps and gains from new stores. Further, Assai’s sale volume was backed by higher traffic and continued rise in market share. Management expects market share to grow for both segments in 2018, wherein digital development and organic expansion will remain major priorities for the company.”
Several other equities research analysts have also issued reports on CBD. Credit Suisse Group raised shares of Companhia Brasileira de Distribuicao from a neutral rating to an outperform rating in a research note on Tuesday, November 7th. UBS Group raised shares of Companhia Brasileira de Distribuicao from a market perform rating to an outperform rating in a research report on Tuesday, November 21st. One analyst has rated the stock with a sell rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has an average rating of Buy and an average target price of $28.00.
A number of institutional investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP lifted its position in Companhia Brasileira de Distribuicao by 1.1% during the 2nd quarter. Dimensional Fund Advisors LP now owns 298,082 shares of the company’s stock worth $5,830,000 after acquiring an additional 3,279 shares during the last quarter. Wells Fargo & Company MN lifted its position in Companhia Brasileira de Distribuicao by 1,184.5% during the 3rd quarter. Wells Fargo & Company MN now owns 4,817 shares of the company’s stock worth $114,000 after acquiring an additional 4,442 shares during the last quarter. Fisher Asset Management LLC lifted its position in Companhia Brasileira de Distribuicao by 0.4% during the 4th quarter. Fisher Asset Management LLC now owns 1,163,708 shares of the company’s stock worth $27,429,000 after acquiring an additional 4,475 shares during the last quarter. Thomas White International Ltd. lifted its position in Companhia Brasileira de Distribuicao by 7.3% during the 4th quarter. Thomas White International Ltd. now owns 78,902 shares of the company’s stock worth $1,860,000 after acquiring an additional 5,376 shares during the last quarter. Finally, Virtu Financial LLC acquired a new position in Companhia Brasileira de Distribuicao during the 4th quarter worth $200,000. 3.22% of the stock is owned by hedge funds and other institutional investors.
Companhia Brasileira de Distribuicao Company Profile
Companhia Brasileira de Distribuicao, directly or through its subsidiaries, is engaged in the retail of food, clothing, home appliances, electronics and other items through its chain of hypermarkets, supermarkets, specialized stores and department stores principally under the trade names Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Super, Minimercado Extra, Assai an the neighborhood shopping mall brand Conviva.
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