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Nau Securities

Start of Coverage: 05-02-2019

Resume of the last report made by this analyst

The firm enjoys an attractive ROIC of 28% and 11% normalised equity free cash flow yield (maintenance capex) despite the currently depressed returns of its new ventures, Ara and Hebe. On a “normalised” basis (Ara and Hebe on 5% and 6% EBITDA margins, respectively), we estimate that JM trades on 15x PER and 7x EV/EBITDA. Our SOTP valuation arrives at a fair value of €16.0 per share and our DCF valuation equals €18.0. We initiate on JM with a Buy rating and a price target of €16.0 (27% upside).

Analyst: Pedro Baptista


The information presented refers to recommendations issued by analysts that follow the Jerónimo Martins’ share. For more information, please read the Analysts Coverage section in this website’s Terms and Conditions.