Lindt & Sprüngli: UBS downgrades 'buy' rating
(CercleFinance.com) - UBS has downgraded its rating on the Swiss chocolate maker Lindt & Sprüngli this morning, saying that the acceleration of growth is now priced in.
The broker maintains its 12-month target price at 78,000 Swiss francs.
Admittedly, “we view premium manufacturer Lindt as a structural winner in the chocolate industry," UBS says in its report on the stock. However, analysts note that Lindt shares have risen by about 20% since last summer, outperforming the Swiss SPI stock index by around 15%. Trading at a 2018 P/E of around 35x, the share's P/E has returned to its 5-year historical average.
In addition, "we think the organic growth acceleration in 2018-19E (to 5-7% y/y) versus 2017 (+3.7%) is now reflected in the share price."
Especially since the North American market has become more difficult. Finally, the share's upside potential now seems limited.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker maintains its 12-month target price at 78,000 Swiss francs.
Admittedly, “we view premium manufacturer Lindt as a structural winner in the chocolate industry," UBS says in its report on the stock. However, analysts note that Lindt shares have risen by about 20% since last summer, outperforming the Swiss SPI stock index by around 15%. Trading at a 2018 P/E of around 35x, the share's P/E has returned to its 5-year historical average.
In addition, "we think the organic growth acceleration in 2018-19E (to 5-7% y/y) versus 2017 (+3.7%) is now reflected in the share price."
Especially since the North American market has become more difficult. Finally, the share's upside potential now seems limited.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.