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On Thursday, Kepler Cheuvreux revised its stance on Koninklijke Ahold Delhaize NV (AD:NA) (OTC:ADRNY), downgrading the company’s stock rating from Buy to Hold, while simultaneously increasing the price target to EUR40.00, up from the previous EUR39.00. The adjustment came after Ahold Delhaize’s shares hit a record high, propelled by first-quarter results that surpassed expectations.
The research firm acknowledged the stock’s performance since their February recommendation, where they foresaw the potential for increased valuation. Ahold Delhaize’s stock has indeed experienced a re-rating and is currently trading at a 14.2x 2025 estimated price-to-earnings (P/E) ratio. Kepler Cheuvreux believes this valuation is justified, considering the company’s balance of growth prospects and dividend yield.
Despite the positive view on Ahold Delhaize’s fundamentals, Kepler Cheuvreux suggests that investors might consider taking profits at this juncture. The firm cited the strengthening of the US dollar as a headwind for the company. Consequently, they have also decided to remove Ahold Delhaize from their European Dividend Selection list.
The updated price target reflects a modest increase from the previous target set by the firm. Ahold Delhaize’s recent performance in the market, coupled with its financial results, has led to a reassessment of its future prospects. The new rating and price target indicate Kepler Cheuvreux’s current view on the stock’s potential and its alignment with market conditions.
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