Companhia Brasileira de Distribuicao (CBD) Raised to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Companhia Brasileira de Distribuicao (NYSE:CBD) from a hold rating to a buy rating in a report published on Wednesday morning. The firm currently has $26.00 price target on the stock.
According to Zacks, “Estimates have been rising since CBD reported improved second quarter 2017 sales, driven by strong improvement in Extra Hiper markets and consistent growth at Assai. However, the reported quarter’s growth was lower than the preceding quarter’s growth. Nevertheless, shares of the company have outperformed the industry over the last six months. Strong customer traffic expansion and increase in sales volume, offsetting the effect of the slowdown in food inflation. Further, higher gross margins and a decline in selling, general and administrative expenses at Multivarejo boosted EBITDA margin. We are encouraged by company’s operating efficiency and productivity projects. Store openings and conversion of Extra Hiper stores to Assai is also boosting sales and will help accelerate the expansion of GPA’s cash-and-carry banner into new cities across Brazil. However, challenging economic scenario in Brazil remains a concern.”
Separately, BidaskClub downgraded shares of Companhia Brasileira de Distribuicao from a buy rating to a hold rating in a research report on Friday, June 23rd. Three equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Companhia Brasileira de Distribuicao currently has a consensus rating of Buy and an average target price of $26.00.
Companhia Brasileira de Distribuicao (NYSE:CBD) opened at 22.84 on Wednesday. Companhia Brasileira de Distribuicao has a 12-month low of $14.08 and a 12-month high of $24.75. The firm has a market cap of $6.08 billion, a PE ratio of 143.65 and a beta of 1.84. The stock has a 50 day moving average of $22.76 and a 200 day moving average of $20.73.
Hedge funds have recently made changes to their positions in the company. Thomas White International Ltd. bought a new stake in shares of Companhia Brasileira de Distribuicao during the first quarter valued at approximately $1,217,000. Dynamic Technology Lab Private Ltd bought a new stake in shares of Companhia Brasileira de Distribuicao during the first quarter valued at approximately $419,000. Brandes Investment Partners LP increased its stake in shares of Companhia Brasileira de Distribuicao by 1.1% in the first quarter. Brandes Investment Partners LP now owns 1,781,128 shares of the company’s stock valued at $34,198,000 after buying an additional 20,215 shares during the period. Portland Hill Asset Management Ltd bought a new stake in shares of Companhia Brasileira de Distribuicao during the first quarter valued at approximately $1,530,000. Finally, Macquarie Group Ltd. increased its stake in shares of Companhia Brasileira de Distribuicao by 1.4% in the first quarter. Macquarie Group Ltd. now owns 2,562,437 shares of the company’s stock valued at $49,201,000 after buying an additional 34,952 shares during the period. 3.50% of the stock is owned by institutional investors.
About Companhia Brasileira de Distribuicao
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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