UPDATE: Credit Suisse Initiates Coverage On Cnova On Positive Outlook

In a report published Friday, Credit Suisse analyst Stephen Ju initiated coverage on

with an Outperform rating and $13.00 price target. In the report, Credit Suisse noted, “Similar to Amazon, Cnova has launched a third-party marketplaces platform in France and Brazil (one property in Extra.com.br). In 1Q15 it will launch for Casas Bahia and Pontofrio. Given the net versus gross accounting for marketplaces, this should confer benefits to Cnova's gross and operating margins, which we expect to expand from the current 14.4% to 19.4% over the next five years.” Cnova closed on Wednesday at $7.91.