Shares of Carrefour fell Friday after Jefferies lowered the French retailer's rating to "hold." The downgrade reflects the view that much of the upside from the company's strategic review, initiated in February 2025, is already priced into the stock. Jefferies also set a price target of €14, a marginal increase from the current trading price around €13.92.

The downgrade follows a roughly 20% re-rating of Carrefour's shares since mid-2025. This was largely driven by discussions around asset disposals. Jefferies acknowledged that the strategic review delivered improved earnings per share. However, the analysts cited concerns about trading momentum in Carrefour's core markets, specifically in France and Brazil.

Jefferies forecasts group revenue of €86.78 billion in 2025. The brokerage estimates the shares are valued at about 6.9x 2027 earnings, which is a smaller discount compared to early 2025. Carrefour's market capitalization is approximately €9.2 billion. Investors are now watching for clearer signs of improvement in core markets.

Carrefour, like other European retailers, has been navigating inflation and shifting consumer behavior. The company’s focus on streamlining operations and exiting certain markets is aimed at bolstering profitability. The market's reaction suggests a cautious approach, awaiting further evidence of sustainable growth and improved performance in key regions like France and Brazil.