Massmart Stock drops after downgrade
RETAILER NEWS
IOL Business - Jan 16th, 08:31
Massmart Holdings, controlled by Walmart, fell for the first time in nine trading days after Deutsche Bank cut its recommendation on the stock to sell from hold.
Massmart closed 2.16 percent lower at R178.76 on Friday and Deutsche Bank’s 12-month price estimate was R140. While Massmart might benefit from “potential synergies from a Walmart tie-up”, Deutsche Bank had concerns about near-term earnings from “potentially aggressive discounting to pursue market share” and “the potential drag on earnings from a significant investment in supply chain and organic growth”, analyst Nick Higham said. The downgrade means only two of 14 monitored analysts do not have a sell recommendation on Massmart. – Bloomberg
Related Retailers
 | MassmartThe Massmart Group comprises nine wholesale and retail chains, and one buying group - 288 stores and 470 buying Group members all focused on high-volume and low-cost distribution. They operate in 14 countries in sub-Saharan Africa through the Group...Click here to read more about Massmart |
| MassmartThe Massmart Group comprises nine wholesale and retail chains, and one buying group - 288 stores and 470 buying Group members all focused on high-volume and low-cost distribution. They operate in 14 countries in sub-Saharan Africa through the Group...Click here to read more about Massmart |
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