Zacks Investment Research upgraded shares of Companhia Brasileira de Distribuicao (NYSE:CBD) from a sell rating to a strong-buy rating in a report released on Friday morning. The brokerage currently has $23.00 price objective on the stock.

According to Zacks, “Companhia Brasileira has surpassed the industry in the past month. The company’s Assai segment, which has long been a growth driver continued with its stellar performance in the second quarter. During the quarter, sales at this unit surged on the back of store openings and higher comps. This, along with solid Multivarejo performance drove Companhia Brasileira’s top line and margins. Markedly, these units are expected to witness continued market share gains in 2018. Also, the company’s latest pilot programs and core growth strategies for 2018-2020 bode well. However, Companhia Brasileira has been battling food deflation for a while now. The trend lingered in the second quarter of 2018, wherein food deflation had an adverse impact on Assai’s gross margin and gross sales. Further, management had earlier stated that it expects food deflation to persist in 2018. Stiff industry competition also remains a threat.”

Other equities research analysts also recently issued reports about the company. Santander raised Companhia Brasileira de Distribuicao from a hold rating to a buy rating in a report on Monday, September 10th. Goldman Sachs Group raised Companhia Brasileira de Distribuicao to a buy rating in a report on Wednesday, June 20th. Finally, ValuEngine raised Companhia Brasileira de Distribuicao from a sell rating to a hold rating in a report on Tuesday, June 5th. One equities research analyst has rated the stock with a sell rating, six have given a buy rating and one has assigned a strong buy rating to the company’s stock. Companhia Brasileira de Distribuicao has a consensus rating of Buy and an average target price of $23.00.

CBD stock opened at $20.84 on Friday. The company has a market capitalization of $5.64 billion, a PE ratio of 45.83, a PEG ratio of 1.05 and a beta of 1.77. Companhia Brasileira de Distribuicao has a twelve month low of $17.91 and a twelve month high of $25.90. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.20 and a quick ratio of 1.00.

Companhia Brasileira de Distribuicao (NYSE:CBD) last posted its quarterly earnings data on Tuesday, July 24th. The company reported $0.15 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.16 by ($0.01). The firm had revenue of $3.28 billion during the quarter, compared to analyst estimates of $3.19 billion. Companhia Brasileira de Distribuicao had a net margin of 2.00% and a return on equity of 4.27%. sell-side analysts predict that Companhia Brasileira de Distribuicao will post 1 EPS for the current year.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Newfoundland Capital Management acquired a new stake in shares of Companhia Brasileira de Distribuicao during the second quarter worth $3,593,000. Aperio Group LLC lifted its holdings in shares of Companhia Brasileira de Distribuicao by 8.4% during the second quarter. Aperio Group LLC now owns 133,853 shares of the company’s stock worth $2,674,000 after purchasing an additional 10,339 shares during the period. Eqis Capital Management Inc. acquired a new stake in shares of Companhia Brasileira de Distribuicao during the second quarter worth $338,000. Pinebridge Investments L.P. lifted its holdings in shares of Companhia Brasileira de Distribuicao by 254.6% during the second quarter. Pinebridge Investments L.P. now owns 341,579 shares of the company’s stock worth $6,824,000 after purchasing an additional 245,239 shares during the period. Finally, Boston Common Asset Management LLC lifted its holdings in shares of Companhia Brasileira de Distribuicao by 19.8% during the second quarter. Boston Common Asset Management LLC now owns 22,500 shares of the company’s stock worth $450,000 after purchasing an additional 3,720 shares during the period. 2.56% of the stock is owned by hedge funds and other institutional investors.

About Companhia Brasileira de Distribuicao

Companhia Brasileira de DistribuiĆ§Ć£o engages in the retail of food, clothing, home appliances, electronics, and other products through its chain of hypermarkets, supermarkets, specialized stores, and department stores in Brazil. The company operates through two segments, Food Retail; and Cash and Carry.

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