JRONF - Positive On Growth Prospects For Retailer Jeronimo Martins
The current share price for Jeronimo Martins (JRONF) (ELI: JMT) represents something close to fair-value, however, improvement in revenues and better control of working capital could lead to upside in valuation. Long-term, the realistic upside is capped around 18 EUR per share, representing an 11% gain from current levels.
A catalyst for above-expected revenue growth would be reduced competition from several competitors. Leading indicators will first come from Carrefour (CRERF) which announces its detailed turnaround plan on January 23rd, 2017. Look for any indications of reduced investment in Poland (JMT’s largest