Companhia Brasileira de Distribuicao (CBD) Rating Lowered to Sell at Zacks Investment Research

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Companhia Brasileira de Distribuicao (NYSE:CBD) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.

According to Zacks, “Companhia Brasileira, which has lagged the industry in a year, 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. Apart from this, macroeconomic headwinds like stiff industry competition and high unemployment also pose threats to the company. Nonetheless, Companhia Brasileira’s Assai segment, continued with its stellar performance in the second quarter. Sales at this unit surged, driven by ore openings and higher comps, which 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.”

CBD has been the subject of a number of other reports. ValuEngine upgraded shares of Companhia Brasileira de Distribuicao from a “sell” rating to a “hold” rating in a research report on Wednesday, July 25th. Bank of America upgraded shares of Companhia Brasileira de Distribuicao from a “neutral” rating to a “buy” rating in a research report on Wednesday, May 2nd. Finally, Goldman Sachs Group upgraded shares of Companhia Brasileira de Distribuicao to a “buy” rating in a research report on Wednesday, June 20th. Two equities research analysts have rated the stock with a sell rating and five have given a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $23.00.

CBD opened at $19.96 on Monday. The company has a market capitalization of $5.44 billion, a price-to-earnings ratio of 43.39, a PEG ratio of 1.20 and a beta of 1.82. Companhia Brasileira de Distribuicao has a 1-year low of $18.36 and a 1-year high of $25.90. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.20 and a quick ratio of 1.00.

Institutional investors and hedge funds have recently bought and sold shares of the business. Eqis Capital Management Inc. bought a new position in shares of Companhia Brasileira de Distribuicao in the second quarter worth approximately $338,000. Cubist Systematic Strategies LLC bought a new position in shares of Companhia Brasileira de Distribuicao in the second quarter worth approximately $344,000. Tower Research Capital LLC TRC boosted its position in shares of Companhia Brasileira de Distribuicao by 287.3% in the second quarter. Tower Research Capital LLC TRC now owns 21,069 shares of the company’s stock worth $421,000 after purchasing an additional 15,629 shares during the period. Boston Common Asset Management LLC boosted its position in shares of Companhia Brasileira de Distribuicao by 19.8% in the second quarter. Boston Common Asset Management LLC now owns 22,500 shares of the company’s stock worth $450,000 after purchasing an additional 3,720 shares during the period. Finally, Renaissance Technologies LLC bought a new position in shares of Companhia Brasileira de Distribuicao in the fourth quarter worth approximately $1,002,000. Institutional investors and hedge funds own 2.53% of the company’s stock.

Companhia Brasileira de Distribuicao Company Profile

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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