Bernstein Updates Model for Dino Polska Post-H1 Results; Underperform Rating Kept

01:44 AM EDT, 08/24/2026 (MT Newswires) -- Bernstein revised its model for Dino Polska (DNP.WA), updating its earnings estimates to reflect the Polish grocery retailer's first-half results. "Dino's shares reacted positively on Friday (+7.7%) after announcing a fall in Q2 like-for-like growth (LFL) to +0.3% (from +4.4% in Q1), but relatively stable EBITDA margins (down -57 [basis points] YOY in Q2, similar to Q1's -54bps reduction). Investors had feared a greater impact on profitability. Management [is] following a clear plan to maintain volume growth despite 4-6% price deflation," the research firm said Monday. For the six months ended June 30, Dino Polska reported a 12.5% year-over-year increase in sales revenue to 17.97 billion Polish zloty along with a 1% rise in attributable net profit to 716.1 million zloty. Against this backdrop, analysts reiterated their underperform rating on the stock, with a price target of 25 zloty. Bernstein also trimmed its full-year 2026 EPS projection for the company by 1% to 1.66 zloty. "Our view is also unchanged. We like management's consistent approach of continuing to grow volumes and roll out stores through the deflationary cycle. However, we continue to be more pessimistic on the [medium-term] outlook for margin recovery. We expect that (1) as Dino grows, its stores will increasingly compete with Biedronka stores and come off worse, and (2) Dino's return on capital will consequently decline," the note said.