Halister News

(Bloomberg) -- Dia rises as much as 8.4%, most since Aug. 2011 after 1Q; net sales, adj. Ebitda were in line with estimates.

• 1Q LFL sales “ex-calendar” of 7.0%, the highest growth rate since the company’s listing; with Iberia LFL down 0.3%, emerging markets up 15.6%
• Co. sees adj. Ebitda margin stable in 2016, expects adj. Ebitda growth at constant FX in 2016

BARCLAYS (overweight - PT EU6.55)

• 1Q earnings were in line to slightly better than ests., outlook “supportive”
• Iberian LFL: -1.4%, vs company-collated consensus -1.4%, Barclays est. -1.6%
• EM LFL: 15.6%, vs consensus 13.8%, Barclays 14.2%
• On more significant ex-calendar basis, Iberia LFL -0.3% vs Barclays est. -0.4%, pickup from -0.9% in 4Q, looks on track for a positive number in 2Q

BRYAN GARNIER (neutral - PT EU6.5)

• Iberia 1Q LFL sales ex-calendar effect improved vs 4Q. emerging markets was very strong given tough Latam backdrop
• In 1Q had a a lot of remodeling in Iberia that affected sales growth, could help boost sales growth in future quarters
• At -0.3% LFL, it “may be psychological,” but still negative on Iberia

EXANE (underperform - PT EU4.50)

• 1Q in-line, with better profit in Iberia and Latam weaker
• Result a bit light at the profit level but sales, Ebitda in- line with ests., net debt was as expected at ~EU1.16b
• Iberian margin much stronger than anticipated
• Emerging markets sales much improved vs prior quarters but came at cost, with margins much weaker than in recent quarters
• Doesn’t see significant change to consensus ests.

DATA

• Trading on 11.5x next year’s earnings vs 15.8x for the Stoxx 600 Retail index according to Bloomberg data
• Stock has risen 4.8% month-to-date vs a 3.2% fall in the Stoxx 600 Retail index; is down 6.7% YTD vs a 10.1% fall in the SXRP index
• Of 32 analyst ratings, 21 are buy, 6 hold, 5 sell, with an average PT of EU6 implying ~18% upside