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CONSUMER STAPLES: Kesko (KESBV; unrated) 5.3Y secondary performance

CONSUMER STAPLES

Kesko equities are hitting a 1yr high but new 5.3Y is a more mute -3 in since pricing last week (very weak books).

It is 10bps north of FV but a discount we sympathise with - co has exposed itself to more cyclical autos and building and home trade through it's other two divisions. Grocery stand-alone is actually impressive on margins (highest among € issuers) and perhaps echoing that it has the highest market share in country of any local issuer (at 34.3%/#2). That is balanced with the country exposure and smaller scale in current FV (vs. CAFP, ADNA).

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Kesko equities are hitting a 1yr high but new 5.3Y is a more mute -3 in since pricing last week (very weak books).

It is 10bps north of FV but a discount we sympathise with - co has exposed itself to more cyclical autos and building and home trade through it's other two divisions. Grocery stand-alone is actually impressive on margins (highest among € issuers) and perhaps echoing that it has the highest market share in country of any local issuer (at 34.3%/#2). That is balanced with the country exposure and smaller scale in current FV (vs. CAFP, ADNA).

Keep reading...Show less