Canaccord Genuity lowers target price on B&M following CEO's exit

(Sharecast News) - Analysts at Canaccord Genuity lowered their target price on discount retailer B&M from 545.0p to 495.0p on Tuesday following the surprise announcement of chief executive Alex Russo's departure and a further moderation to FY25 guidance. Canaccord Genuity pointed out that Russo's departure follows the news announced in November that B&M's trading director was also set to depart in March, highlighting "significant changes" to the group's senior leadership team.

"The appointment of a new CEO will be an important catalyst and driver of sentiment in the shares," said the Canadian bank, which stood by its 'buy' rating on the stock. "Whilst further guidance reductions are disappointing, and the leadership changes unsettling, we continue to believe that the group's long-term growth opportunity remains intact.

On Canaccord's revised forecasts, B&M trades on an FY25E price-to-earnings ratio of 8.6x, something it continues to believe offers "good value", both in the context of the long-term average FY1 PER multiple of roughly 15x, but also given the "significant long-term expansion potential" both in the UK and Europe,







Reporting by Iain Gilbert at Sharecast.com