Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - Deutsche Bank has lowered its price target on B&M European Value Retail SA (LON:BME) to GBP2.50 from GBP3.40 while maintaining a Buy rating on the stock.
The bank cited a "credibility crisis" for B&M following the release of the retailer’s new Back to Basics strategy less than two weeks ago, suggesting the financial foundations of the plan may be inadequate.
Deutsche Bank noted that while management confirmed expectations to deliver a low double-digit percentage EBITDA margin in the long term, the path to recovery appears "both steeper and likely longer than previously hoped."
The departure of B&M’s CFO compounds concerns about rebuilding investor trust, with Deutsche Bank emphasizing the need for evidence that future assumptions are based on correct information and that the Back to Basics plan is having a beneficial impact.
Deutsche Bank has cut its earnings per share estimates by 12% for fiscal year 2026 and 13% for fiscal year 2027, but maintains its Buy recommendation based on the stock trading at approximately 7 times calendar 2026 price-to-earnings ratio, suggesting upside potential "when the dust settles."
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