RBC Capital downgrades B&M European Value to 'sector perform'

RBC Capital Markets downgraded its stance on shares of discount retailer B&M European Value Retail on Monday to ‘sector perform’ from ‘outperform’ as it pointed to better valuation upside elsewhere.

The bank said B&M is a strong, well-managed retailer but noted that the shares have reached its price target of 575p.

"We remain attracted to B&M's business model and expansion opportunities in the UK and France. However we see more valuation on upside for several other general retailers, hence we downgrade," it said.

At 1330 BST, the shares were down 1.9% at 566.20p.