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Investing.com - Jefferies upgraded Koninklijke Ahold Delhaize NV (AS:AD) (OTC:ADRNY) from Hold to Buy and raised its price target to EUR42.00 from EUR39.50.
The upgrade comes as Jefferies believes recent concerns weighing on the grocery retailer are overblown, including U.S. dollar fluctuations, price competition worries, and Amazon’s renewed focus on its food business.
Jefferies noted that Ahold Delhaize’s subsequent derating to a 7.8% free cash yield fails to account for the growing strength of the company’s existing businesses.
The firm also highlighted potential opportunities for Ahold Delhaize to pursue meaningful consolidation in response to changing competition dynamics, specifically mentioning Kroger as "perhaps the most obvious partner."
The new EUR42.00 price target represents an increase of approximately 6.3% from the previous target of EUR39.50, reflecting Jefferies’ more positive outlook on the Dutch-Belgian grocery retailer.
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