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 food retail margins around 4.6% medium term, below prior expectations, with price competition intensifying due to expanded Sunday trading.
Despite a 4% dividend yield and strong cash generation, Colruyt’s share price fell over 3% as investors reacted to the weaker outlook.