UBS downgraded Colruyt to neutral from buy, cutting 12‑month price target to €38 from €47, shares fell >3%.
UBS cut EPS forecasts by 6‑8% over three years, citing weaker revenue growth, flat margins and higher financing costs.
Intensifying competition from expanded Sunday trading and rivals’ longer opening hours pressures Colruyt’s market share and pricing gap.
UBS expects medium‑term food‑retail margins around 4.6%, with rising wage costs offsetting input‑cost relief, and maintains a ~4% dividend yield.