AHODF - Ahold Delhaize: Sustained Operating Margins Are Key For The Upside

• Ahold Delhaize has upside potential to US peers as long as it manages to defend its operating margins (2021 outlook is for 4.3% underlying operating margin).
• Forecast for free cash flow for 2021 remains at 1.6B EUR, or approximately 1.45 EUR/share, and I think it will improve into 2022.
• Taking account of peer valuations and market conditions, selling covered calls seems reasonable. However be mindful of the November 15 Investor Day.
• I compare Ahold Delhaize to Kroger and Carrefour and present an alternative way to gain exposure via landlord Wereldhave.

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