Lindt & Sprüngli: Berenberg downgrades to 'hold'
(CercleFinance.com) - On Thursday Berenberg downgraded Lindt & Sprüngli participation certificates from "buy" to "hold," while cutting its target price for the share from 6,300 Swiss francs to 6,200 Swiss francs, saying that "quality is priced in.
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In a research note, the broker points out that organic sales growth of 3.7% in 2017 has been the "lowest since 2009."
Given Lindt's existing scale and shares in key markets, getting back to historical 6-8% target levels will probably prove to be challenging, Berenberg said, citing the current pricing environment.
Berenberg also cut its price target on registered shares to 65,500 Swiss francs, from 66,600 Swiss francs previously.
Lindt's registered shares and participation certificates are both traded on the SIX Exchange in Zurich. Registered shares have voting rights, while the participation certificates have no voting rights.
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.
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In a research note, the broker points out that organic sales growth of 3.7% in 2017 has been the "lowest since 2009."
Given Lindt's existing scale and shares in key markets, getting back to historical 6-8% target levels will probably prove to be challenging, Berenberg said, citing the current pricing environment.
Berenberg also cut its price target on registered shares to 65,500 Swiss francs, from 66,600 Swiss francs previously.
Lindt's registered shares and participation certificates are both traded on the SIX Exchange in Zurich. Registered shares have voting rights, while the participation certificates have no voting rights.
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.