Jumbo stock recovers as company targets 310-320 million euro profit

Jumbo's stock has shown signs of recovery, reaching a seven-month high following positive management updates and sales trends. The company has confirmed its net profit target of 310-320 million euros. This recovery follows a period of pressure caused by a Citi downgrade, concerns regarding MSCI index membership, and fiscal challenges in Romania, a key growth market for the group.

NBG Securities has maintained an ‘Outperform’ recommendation for Jumbo, though it adjusted its price target from 35 euros to 31.30 euros. This new valuation suggests an upside potential of approximately 19% from current levels. While investors have expressed concerns regarding slower sales growth projections for 2026, particularly due to the economic climate in Romania, the group's business model remains resilient.

Jumbo is pursuing international expansion through various channels. Plans include opening five new stores in Israel by 2026 and its first Canadian location by the end of this year. Additionally, a new agreement with the Balfin Group is expected to facilitate expansion into markets such as Ukraine, Georgia, Armenia, Azerbaijan, Kazakhstan, and Uzbekistan.