XM does not provide services to residents of the United States of America.

J.P.Morgan sees weaker European food retail in 2024/25



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>BUZZ-J.P.Morgan sees weaker European food retail in 2024/25</title></head><body>

** J.P.Morgan expects disinflation to continue impacting sales and margins of the European Food Retail sector in 2024/25

** JPM says nothing structurally improved in food retail in 2020-23, whilst some companies now appear to be over earning

** The broker downgrades Tesco TSCO.L and Metro B4B.DE to "underweight" from "neutral", contributing to a total of six sector stocks rated as "underweight" and only Colruyt COLR.BR at "overweight"

** It sees its "cautious sector stance" underpinned by U.S. grocers having missed expectations, and food producer prices entering "negative territory", emphasizing deflationary risks

** "The sector still has outperformed in relative terms and looks far from cheap" - JPM

** The broker deems Metro's revenue growth and outlook as disappointing, justifying a price target with a 16% downside potential

** It adds that Tesco downgrade is based on the company's likely inability to sustain its outperformance which was linked to temporary executed self-help and macro tailwinds

** The Metro stock has dropped by 32.66% since the beginning of the year while Tesco has gained 27.48% YTD



Reporting by Chiara Holzhaeuser

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.