Companhia Brasileira de Distribuicao (NYSE:CBD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The brokerage currently has a $27.00 price objective on the stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.48% from the company’s current price.

According to Zacks, “Estimates have been rising since CBD reported improved second quarter 2017 sales, driven by strong improvement in Extra Hiper markets and consistent growth at Assai. However, the reported quarter’s growth was lower than the preceding quarter’s growth. Nevertheless, shares of the company have outperformed the industry over the last three months. Strong customer traffic expansion and increase in sales volume, offsetting the effect of the slowdown in food inflation. Further, higher gross margins and a decline in selling, general and administrative expenses at Multivarejo boosted EBITDA margin. We are encouraged by company’s operating efficiency and productivity projects. Store openings and conversion of Extra Hiper stores to Assai is also boosting sales and will help accelerate the expansion of GPA’s cash-and-carry banner into new cities across Brazil. However, challenging economic scenario in Brazil remains a concern.”

Separately, BidaskClub downgraded Companhia Brasileira de Distribuicao from a “buy” rating to a “hold” rating in a report on Friday, June 23rd. Three investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus target price of $27.00.

Shares of Companhia Brasileira de Distribuicao (CBD) opened at 24.22 on Friday. Companhia Brasileira de Distribuicao has a 12-month low of $14.08 and a 12-month high of $24.75. The company has a 50-day moving average of $23.06 and a 200 day moving average of $20.84. The stock has a market capitalization of $6.44 billion, a price-to-earnings ratio of 152.33 and a beta of 1.84.

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Large investors have recently made changes to their positions in the business. Thomas White International Ltd. acquired a new position in Companhia Brasileira de Distribuicao in the first quarter valued at approximately $1,217,000. Dynamic Technology Lab Private Ltd acquired a new position in Companhia Brasileira de Distribuicao in the first quarter valued at approximately $419,000. Brandes Investment Partners LP lifted its holdings in Companhia Brasileira de Distribuicao by 1.1% in the first quarter. Brandes Investment Partners LP now owns 1,781,128 shares of the company’s stock valued at $34,198,000 after acquiring an additional 20,215 shares during the period. Portland Hill Asset Management Ltd acquired a new position in Companhia Brasileira de Distribuicao in the first quarter valued at approximately $1,530,000. Finally, Macquarie Group Ltd. lifted its holdings in Companhia Brasileira de Distribuicao by 1.4% in the first quarter. Macquarie Group Ltd. now owns 2,562,437 shares of the company’s stock valued at $49,201,000 after acquiring an additional 34,952 shares during the period. 3.50% of the stock is owned by institutional investors.

About Companhia Brasileira de Distribuicao

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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