Vranken-Pommery: Oddo still a seller, adjusts TP
(CercleFinance.com) - Oddo maintains its underperform rating on Vranken Pommery shares, having reduced its target price for them from 20 euros to 19 euros.
The analyst points out a 12% drop in operating profit to 5.9 million euros on H1 sales of 112.2 million euros (+20.2%).
He says that the results fall short of forecasts: profitability is penalised by the increase in marketing costs, the analyst notes, for whom Vranken Pommery's desire to revise its adjusted sales target to 5% is in line with the analysis.
In spite of this, Oddo maintains its 2022 forecast, pointing to the dynamic nature of the champagne market and the good harvest this year.
However, it is more cautious regarding 2023, due to uncertainty about the future economic context, which could impact the demand for champagne.
All said, the broker maintains its Underperform rating relative to peers, whose fundamentals are considered stronger. It has trimming its target price for the share to 19 euros from 20 euros.
Copyright (c) 2022 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.
The analyst points out a 12% drop in operating profit to 5.9 million euros on H1 sales of 112.2 million euros (+20.2%).
He says that the results fall short of forecasts: profitability is penalised by the increase in marketing costs, the analyst notes, for whom Vranken Pommery's desire to revise its adjusted sales target to 5% is in line with the analysis.
In spite of this, Oddo maintains its 2022 forecast, pointing to the dynamic nature of the champagne market and the good harvest this year.
However, it is more cautious regarding 2023, due to uncertainty about the future economic context, which could impact the demand for champagne.
All said, the broker maintains its Underperform rating relative to peers, whose fundamentals are considered stronger. It has trimming its target price for the share to 19 euros from 20 euros.
Copyright (c) 2022 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.