Zacks Investment Research upgraded shares of Companhia Brasileira de Distribuicao (NYSE:CBD) from a hold rating to a buy rating in a report issued on Tuesday morning. Zacks Investment Research currently has $28.00 price objective on the stock.

According to Zacks, “Shares of Companhia Brasileira have outperformed the industry over the last six months. The company has been depicting strong improvement in its higher-return format stores such as Assai and Multivarejo. Store openings and conversion of Extra Hiper stores to Assai has been boosting sales and aiding the company to accelerate the expansion of its cash-and-carry banner into new cities and states across Brazil. By the end of 2017, the company expects to complete 16 store conversions and open six to eight new Assai stores. We are also encouraged by the company’s operating efficiency and productivity projects. In the second quarter, higher gross margins and a decline in selling, general and administrative expenses at Multivarejo boosted EBITDA margin. However a challenging economic scenario in Brazil has led to lower demand and consumer confidence, thereby posing concerns for the company, especially in the home appliances category.”

Separately, BidaskClub downgraded Companhia Brasileira de Distribuicao from a buy rating to a hold rating in a report on Friday, June 23rd. Three analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of Buy and an average price target of $28.00.

Companhia Brasileira de Distribuicao (NYSE CBD) traded up 0.51% on Tuesday, hitting $23.67. The stock had a trading volume of 223,335 shares. Companhia Brasileira de Distribuicao has a one year low of $14.08 and a one year high of $25.72. The company’s 50-day moving average price is $23.57 and its 200 day moving average price is $21.19. The firm has a market cap of $6.30 billion, a price-to-earnings ratio of 149.81 and a beta of 1.84.

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Several hedge funds have recently added to or reduced their stakes in the company. Dynamic Technology Lab Private Ltd purchased a new stake in Companhia Brasileira de Distribuicao during the 1st quarter worth $419,000. Portland Hill Asset Management Ltd purchased a new stake in Companhia Brasileira de Distribuicao during the 1st quarter worth $1,530,000. Macquarie Group Ltd. boosted its position in Companhia Brasileira de Distribuicao by 1.4% during the 1st quarter. Macquarie Group Ltd. now owns 2,562,437 shares of the company’s stock worth $49,201,000 after purchasing an additional 34,952 shares during the period. INCA Investments LLC boosted its position in Companhia Brasileira de Distribuicao by 16.3% during the 2nd quarter. INCA Investments LLC now owns 1,878,300 shares of the company’s stock worth $36,721,000 after purchasing an additional 263,800 shares during the period. Finally, NGAM Advisors L.P. purchased a new stake in Companhia Brasileira de Distribuicao during the 2nd quarter worth $201,000. Institutional investors and hedge funds own 3.50% of the company’s stock.

Companhia Brasileira de Distribuicao Company Profile

Companhia Brasileira de Distribuicao, directly or through its subsidiaries, is engaged in the retail of food, clothing, home appliances, electronics and other items through its chain of hypermarkets, supermarkets, specialized stores and department stores principally under the trade names Pao de Acucar, Minuto Pao de Acucar, Extra Hiper, Extra Super, Minimercado Extra, Assai an the neighborhood shopping mall brand Conviva.

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