Goldman Sachs Initiates Ceconomy at Neutral

« We initiate [Ceconomy] at Neutral, with an €11.6 price target (c.2% upside). We 
believe: 1) a low-growth consumer electronic retail category channel shift to online sales will offer some growth, but store LFL could stay negative
 (or flat); 2) underlying cost inflation (especially in stores) could offset the
 benefits from self-help initiatives (including Services & Solutions
 penetration, loyalty program etc.); 3) our pricing survey shows 2-5% price
 differential with Amazon in Germany, which we believe needs to fall; 4) a
 c.5% EBITDA margin (assuming no exit from loss-making countries) looks optimistic, but we expect EBIT margin/FCF to improve in FY18. »

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