www.bethelfinance.com
Citi Capital Markets has initiated coverage of independent supermarket chain Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) with a "Buy" recommendation and a target price of NIS 152 - a 21% premium on today's opening price. Rami Levy is Citi's stock pick for the sector, saying that it is essential for understanding the food retail sector.
Citi is the first foreign investment house to cover Rami Levy. Citi cites the company's high return on investment and rapid growth, saying that it is especially profitable in the Israeli food retail sector. The supermarket chain's prices are 7-11% less than its competitors, but that the story is more than the sum of its prices.
Citi says that Rami Levy's larger number of employees per square meter and larger number of check-out counters ensures a fast and better shopping experience. It adds that Rami Levy is traded at values comparable to European retailers with slower growth rates.
Rami Levy's share price rose 5% by midday today to NIS 125.20, giving a market cap of NIS 1.7 billion.
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