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Investing.com - JPMorgan maintained its Overweight rating on Jeronimo Martins SGPS SA (OTC:JRONY) (OTC:JRONF) while slightly lowering its price target to EUR24.80 from EUR25.00.
The investment bank placed the Portuguese retail group on Positive Catalyst Watch ahead of its second-quarter earnings report scheduled for August 1, expressing confidence in the company’s growth trajectory despite the minor price target adjustment.
JPMorgan’s analysis indicates potential for Jeronimo Martins shares to rally approximately 15% further, building on the stock’s roughly 20% year-to-date outperformance, driven by a combination of expected earnings upgrades and valuation re-rating.
The firm’s bullish outlook stems primarily from its forecast for Biedronka, Jeronimo Martins’ Polish supermarket chain, where JPMorgan projects 7% like-for-like sales growth and margin improvement, along with higher forecasts for the company’s Colombian operations.
JPMorgan’s profit forecasts for Jeronimo Martins in fiscal years 2025-2027 stand double digits above consensus estimates, with the December 2026 price target reflecting expectations for significantly higher earnings growth compared to broader market projections.
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