Reinitiating Coverage of Metro Under a New Analyst. See Updated Analyst Note from 27 Dec 2016 - Morningstar Equity Research

Reinitiating Coverage of Metro Under a New Analyst. See Updated Analyst Note from 27 Dec 2016

Reinitiating Coverage of Metro Under a New Analyst. See Updated Analyst Note from 27 Dec 2016 - Morningstar Equity Research
Reinitiating Coverage of Metro Under a New Analyst. See Updated Analyst Note from 27 Dec 2016
Published Dec 29, 2016
24 pages — Published Dec 29, 2016
Price US$ 400.00  |  Buy this Report Now

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Brief Excerpt:

...We are reinitiating coverage of Metro, a diversified German retailer, under a new analyst with a fair value estimate of EUR 35, providing some 12% upside from the current share price. We assign a no-moat rating, given intense competitive pressures in the firm s businesses, and a negative moat trend rating, based on the growing influence of online sales, which is sharpening customers price perceptions and increasing competition. Metro was late to develop the online channel: It is negligible at Real hypermarkets and only 9% of sales at Media Markt-Saturn, the consumer electronics business. The Cash & Carry business (50% of sales, 65% of EBIT) is the most solid. It has the highest operating margins of Metro s three business units and is the only one that approaches a global footprint, with a presence in Asia and Eastern Europe. The requirement for consistency of delivery and product quality limits competitive pressure, so this unit comes closest to being moaty. We think margins can improve...

  
Source:
Document ID
0P00009QR4_20161229_INST
Ticker
MEO=DE
Primary ISIN
Primary Sedol
Report Type
Institutional Company Report
Company
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
Morningstar Equity Research. "Reinitiating Coverage of Metro Under a New Analyst. See Updated Analyst Note from 27 Dec 2016" Dec 29, 2016. Alacra Store. Sep 20, 2019. <http://www.alacrastore.com/storecontent/Morningstar-Equity-Research/Reinitiating-Coverage-of-Metro-Under-a-New-Analyst-See-Updated-Analyst-Note-from-27-Dec-2016-2064-135549>
  
APA:
Morningstar Equity Research. (2016). Reinitiating Coverage of Metro Under a New Analyst. See Updated Analyst Note from 27 Dec 2016 Dec 29, 2016. New York, NY: Alacra Store. Retrieved Sep 20, 2019 from <http://www.alacrastore.com/storecontent/Morningstar-Equity-Research/Reinitiating-Coverage-of-Metro-Under-a-New-Analyst-See-Updated-Analyst-Note-from-27-Dec-2016-2064-135549>
  
US$ 400.00
$  £  
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