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B&M Share Price Target Raised — Will it Benefit From Trade Down?

Sam Boughedda
Sam Boughedda trader
Updated 6 Dec 2022

B&M European Retail Value (LON: BME) shares are down 35% in 2022, but on Monday, one analyst upped his price target on the stock.

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JPMorgan’s Borja Olcese raised the firm’s price target on B&M European Value Retail to 555p (32.6% upside) from 414p, maintaining an Overweight rating on the shares.

It’s the second time the analyst has raised the firm’s price target on the stock in the last few weeks. On November 16, the price target was lifted to 414p per share not long after its interim results.

B&M shares have had a solid run recently, gaining 14% in the last three months and 20% in the last month. 

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

Given the current macroeconomic backdrop and the company’s position in the marketplace, it is easy to see why investors believe the stock could benefit. Soaring inflation has, and may continue to see consumers trade down, and as a result, discount stores such as B&M will more than likely benefit. 

In its half-year report, the company said as much, stating it “is able to trade well in an environment where customers are looking for value,” and it remains “well positioned to benefit from consumers trading down in grocery and non-grocery.”

“As some customers experience our value for money offer for the first time, so would we expect to retain many of these consumers into any economic recovery,” B&M added. 

It is a sentiment shared by other analysts with Goldman Sachs upgrading B&M European Value Retail to Buy from Neutral, raising the price target to 490p from 420p on November 20.

Analyst Richard Edwards told investors in a note that trading down activity is now benefiting B&M, and while Q1 and Q2 sales trends were distorted by garden clearance, autumn trends reflect underlying improvement.

Overall, out of 11 analyst ratings, five have assigned a Buy rating on B&M, five have set the stock at Hold and one has a Sell rating, according to TipRanks. The average price target is 433.5p, representing a potential 3.5% upside.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.