The shares of Carrefour SA (CARR) surged on Wednesday, after the company announced an 8% dividend raise and the launch of a new share buyback program this year as a result of higher 2022 earnings and record cash flow.
“Notwithstanding an inline print, we think the progression of the buyback and dividend will be supportive to the shares,” Citi analysts wrote in an investor note.
“Carrefour is taking volume market share in its lead markets…We think its own label-led strategy leaves it well placed to deliver ‘growth in its main aggregates’ of EBITDA, EBIT and FCF,” they wrote.
As of 9:56 GMT on Wednesday the shares of Carrefour SA were gaining 8.65% (EUR 1.42) to trade at EUR 17.84 in Paris, while extending the gain from the previous session.
The food retailer’s total market cap now stands at EUR 13.33 billion.
The shares of Carrefour SA went down 2.86% in 2022, compared with a 9.50% loss for the benchmark index, CAC 40 (FCHI).
The shares have risen 14.07% so far this year.