NEW YORK, August 01 (New Ratings) – Analysts at JP Morgan Securities initiate coverage of Kesa (KE4) with an “overweight” rating. The fair value is set to 240p.
In a research note published this morning, the analysts mention that the company’s French unit faces challenges like gross margins pressure and high employee costs. JP Morgan believes that these two risk factors may be offset by Kesa’s strong Darty brand and the company’s aggressive cost cutting over the next three years. The analyst concludes that Kesa’s liquidity outlook is, therefore, positive in the medium term.
>From newratings.com published 01/08/2003