Campari: Oddo maintains reduce rating after results
(CercleFinance.com) - Oddo confirms its reduce rating on the Campari share, along with its target price of 5.
The broker is therefore maintaining its fairly cautious forecasts (compared to the consensus) for the moment.
Given the share's huge premium (trading at a 2019 P/E of 33.2x) relative to its peers, we believe that the strong sales growth expected by the consensus is already priced in, Oddo explains.
The broker points out that organic sales growth of 5.3% was below expectations (consensus: +6.1%). Adjusted operating income reached 378.8 million euros, in line with the consensus. Meanwhile, the group's adjusted net income amounted to 249.3 million euros (+6.8%), slightly lower than forecasts (254 million euros for the consensus).
Organic sales growth slowed in Q4 (+2.1% after +6% over 9 months), which was mainly due to Argentina (sales down 47%) and Russia.
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