Companhia Brasileira de Distribuicao (CBD) Rating Increased to Strong-Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Companhia Brasileira de Distribuicao (NYSE:CBD) from a sell rating to a strong-buy rating in a research report sent to investors on Friday morning. The firm currently has $23.00 target price 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.”

A number of other research firms have also weighed in on CBD. ValuEngine lowered shares of Companhia Brasileira de Distribuicao from a hold rating to a sell rating in a research note on Friday, August 10th. Santander upgraded shares of Companhia Brasileira de Distribuicao from a hold rating to a buy rating in a research note on Monday, September 10th. Finally, Goldman Sachs Group upgraded shares of Companhia Brasileira de Distribuicao to a buy rating in a research note on Wednesday, June 20th. One investment analyst has rated the stock with a sell rating, six have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of Buy and an average price target of $23.00.

CBD stock opened at $20.84 on Friday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.00 and a current ratio of 1.20. Companhia Brasileira de Distribuicao has a fifty-two week low of $17.91 and a fifty-two week high of $25.90. The company has a market cap of $5.64 billion, a P/E ratio of 45.83, a PEG ratio of 1.05 and a beta of 1.77.

Companhia Brasileira de Distribuicao (NYSE:CBD) last released its earnings results on Tuesday, July 24th. The company reported $0.15 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.16 by ($0.01). Companhia Brasileira de Distribuicao had a return on equity of 4.27% and a net margin of 2.00%. The firm had revenue of $3.28 billion for the quarter, compared to analysts’ expectations of $3.19 billion. analysts anticipate that Companhia Brasileira de Distribuicao will post 1 EPS for the current year.

Several hedge funds have recently added to or reduced their stakes in the stock. Deprince Race & Zollo Inc. purchased a new position in Companhia Brasileira de Distribuicao in the second quarter valued at approximately $3,604,000. Thomas White International Ltd. increased its stake in Companhia Brasileira de Distribuicao by 7.3% in the second quarter. Thomas White International Ltd. now owns 92,422 shares of the company’s stock valued at $1,847,000 after purchasing an additional 6,298 shares during the last quarter. Eqis Capital Management Inc. purchased a new position in Companhia Brasileira de Distribuicao in the second quarter valued at approximately $338,000. Daiwa Securities Group Inc. increased its stake in Companhia Brasileira de Distribuicao by 172.2% in the second quarter. Daiwa Securities Group Inc. now owns 96,900 shares of the company’s stock valued at $1,936,000 after purchasing an additional 61,300 shares during the last quarter. Finally, Aperio Group LLC increased its stake in Companhia Brasileira de Distribuicao by 8.4% in the second quarter. Aperio Group LLC now owns 133,853 shares of the company’s stock valued at $2,674,000 after purchasing an additional 10,339 shares during the last quarter. Hedge funds and other institutional investors own 2.56% of the company’s stock.

About Companhia Brasileira de Distribuicao

Companhia Brasileira de Distribuição 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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