MBWS: Bryan Garnier downgrades buy rating
(CercleFinance.com) - Bryan, Garnier & Co.
has abandoned its buy rating on the share of the French liquor group Marie Brizard Wine & Spirits (MBWS). Lamenting "low quality growth," analysts have now adopted a neutral rating on the share, while cutting their target price from 14.8 euros to 11 euros (-25.7%).
The research note acknowledges that for MBWS, "growth has returned," as in organic terms, sales growth rate rose from 3.9% in H1 2017 to 7.5% in Q3. Note that this momentum is focused on the "Other activities" division, i.e. wholesale sales outside the group's brands (Marie Brizard, William Peel, Gautier cognacs, etc.). While the situation of these brands (56% of sales) has deteriorated sharply since the beginning of the year (2017) because of France, Poland and the United States.
Bryan Garnier points out, "poor quality growth" which should also slow down and "disappoint" in Q4, to 4.8%, analysts predict. “The poor sales mix is not good news for EBITDA generation in 2017,” which analysts are now expecting to be worth 13 million euros (-2 million euros), while the consensus expects 17 million euros.
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.
has abandoned its buy rating on the share of the French liquor group Marie Brizard Wine & Spirits (MBWS). Lamenting "low quality growth," analysts have now adopted a neutral rating on the share, while cutting their target price from 14.8 euros to 11 euros (-25.7%).
The research note acknowledges that for MBWS, "growth has returned," as in organic terms, sales growth rate rose from 3.9% in H1 2017 to 7.5% in Q3. Note that this momentum is focused on the "Other activities" division, i.e. wholesale sales outside the group's brands (Marie Brizard, William Peel, Gautier cognacs, etc.). While the situation of these brands (56% of sales) has deteriorated sharply since the beginning of the year (2017) because of France, Poland and the United States.
Bryan Garnier points out, "poor quality growth" which should also slow down and "disappoint" in Q4, to 4.8%, analysts predict. “The poor sales mix is not good news for EBITDA generation in 2017,” which analysts are now expecting to be worth 13 million euros (-2 million euros), while the consensus expects 17 million euros.
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.