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Deutsche Bank said on Monday it places “Buy” recommendation on Jumbo’s share, while it reduces its target-price to EUR6.9 from EUR7.4. 

Deutsche Bank notes that December must have been tough for Greek operations, but considers 2012 as the inflexion year for Jumbo.

Profits are set to grow by 13% and cash flow to more than double, according to the Bank’s report. “Shares are up 10% YTD and our new €6.90 target price implies another 27% upside potential”, it adds, while it places Jumbo on “Buy” recommendation.

Investors will soon focus on 2012 earnings, while a 4% growth for 2012 sales is expected mainly as a function of Cyprus and Bulgarian operations, according to Deutsche Bank.

The Bank notes that the new stores in Greece should also help, while Greek active shoppers rose 5% in December.

“When the recession is over, we believe Jumbo should be well placed to enjoy “Jumbo” years once more”, it added.

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