UBS announced on Thursday that it had downgraded its recommendation on Ahold Delhaize shares to 'neutral' from 'buy', with a price target reduced from 34 to 28 euros.

While the analyst is aware of the retail group's strong market shares and competitive positioning, he expects the unfavorable trends currently affecting the sector to continue in the first half of the year, putting particular pressure on profit margins in the USA.

Although the analyst sees a potential rebound in business in the second half of the year, thanks to a positive base effect and internal measures, the potential for positive surprises in the 2024 results remains very limited.

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