Oddo initiates trading with an 'Underperform' rating and a target price of 6.4 euros.

Casino and Rallye (its reference shareholder) are facing financial deadlines whose only way out, given their modest operating performance, is a massive asset disposal plan. Uncertainty as to execution and macro factors is prompting us to adopt a cautious stance," says the analyst.

Oddo reports that the Group has a number of monetizable assets: 1/ Latam (valued at E1.7 bn), 2/ Cdiscount (CNOVA) (E1.2 bn), 3/ GreenYellow (E0.2 bn), as well as 4/ real estate (E1.3 bn) and 5/ non-performing stores (e0.5 bn), representing total assets of e4.8 bn, with gross debt (excluding IFRS 16) expected to reach e5.5 bn by the end of 2022.

Naturally, these sessions are not all straightforward, as some assets are listed on the stock exchange, while others require longer processes", stresses Oddo.

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