Brighter future despite ongoing promotional pressure
* Q4 sales confirmed further promotional pressure in France, especially from the main hypermarkets, Leclerc and Carrefour
* This is likely to weigh on profitability but will be offset by smaller formats and profits outside France, especially LatAm
* Buy rating on Carrefour (TP EUR28), Casino (TP EUR60 vs. EUR53); Reduce on Rallye (TP EUR17 vs. EUR12)
We maintain our ratings: Buy on Carrefour (TP EUR28 unchanged) and Casino new TP EUR60 vs EUR53), Reduce on Rallye (TP EUR17 vs. EUR12): We roll over our DCF base for Carrefour and Casino and change our estimates for Carrefour (-5% EPS 2016-18e) and Casino (+5.9%). We cut our estimates for Carrefour France slightly but still expect +15bps margin in 2017 and 2018 (Dia). We do not change our profit forecasts for LatAm but expect further losses in Asia in FY17. For Casino our estimates exclude Via Varejo with Cnova now discontinued. This has an impact not only on the operating profit lines but also on financial charges and minority interests.