JP Morgan

Resume of the last report made by this analyst

2019 will be Ara’s sixth year and, with an estimated 682 stores and COP 2.9bn sales, its first year of inflection in losses, on our estimates, following increasing sales densities and expanding gross margins. This should be an important milestone in the equity story, in our view, as the market, thus far, has been very skeptical about the ability of JMT to succeed, even assigning negative value to Colombia. We value Colombia at c€1bn within our €19.0/share SOTP (from €18.5/share, following FX update), a valuation approach that should become more relevant as Colombia inflects.

Analyst: Borja Olcese

e-mail: borja.olcese@jpmresearchmail.com