Colruyt Shares Drop 3% After UBS Downgrade

UBS downgraded Colruyt to neutral from buy, cutting 12‑month price target to €38 from €47.
UBS reduced EPS forecasts by 6‑8% over three years, citing weaker revenue growth, flat margins and higher financing costs.
The broker expects medium‑term food‑retail margins around 4.6%, with competition intensifying due to expanded Sunday trading and narrowing price gaps.
Despite a 4% dividend yield and cash generation, UBS sees limited profit growth and flat margins, reflecting a tough Belgian consumer backdrop.