B&M European Value Retail was down another 2% to 278p, under further pressure a day after the chain issued a profit warning and announced its chief executive’s departure, with Deutsche Bank slashing its share price target.
Deutsche analysts noted a lack of volume uplift despite price cuts was likely the main reason for Alex Russo’s exit, leaving B&M at an “inflection point”.
“It may be prudent to wait until a new CEO is announced but we believe that at its core B&M is a robust cash-generative retailer,” analysts said.
A ‘buy’ rating was reiterated, however, the bank took its share price target for B&M from 500p to 425p.
Flagging a roughly 60% drop in B&M’s share price since late 2023, Deutsche said “structural fears” had reemerged.
These included jitters into whether B&M had over-earnt since the Covid pandemic and around increased competition alongside wider pressure on consumers, it added.
Shares were down a further 2.3% at 278.3p on Tuesday, after facing pressure on the profit warning and Russo announcement earlier in the week.