RBC Capital Markets initiated coverage on Jerónimo Martins with an outperform rating.
The bank set a price target of €22 for the stock.
Analysts expressed confidence in the management of Biedronka, the company's primary Polish subsidiary.
An RBC consumer survey ranked Biedronka first for value and product range in Poland.
The broker forecasts 2.8% like-for-like sales growth for the Polish unit this year.
Simply Wall St separately identified the stock as undervalued using a discounted cash flow model.
Jerónimo Martins shares traded higher following the RBC announcement.