LVMH: Stifel maintains buy rating
(CercleFinance.com) - Stifel maintains its buy rating on LVMH shares with an increased target price of 760 euros.
"As expected, the majority of future growth for Moet Hennessy (MH) should come organically, complemented by tack-on acquisitions aimed at strengthening a cohesive premium Wine & Spirits brand portfolio," the analyst notes.
"Our LVMH model currently reflects +6% sales CAGR in 2022-25E and 32.8% EBIT margin for Wine & Spirits by 2026, which is consistent with MH's long-term sales ambition. MH is targeting a long-term EBIT margin in line with the level seen in recent years (31% past five-year average)," Stifel adds, before noting that management "will adjust the cost base swiftly when and if demand conditions become difficult".
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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.
"As expected, the majority of future growth for Moet Hennessy (MH) should come organically, complemented by tack-on acquisitions aimed at strengthening a cohesive premium Wine & Spirits brand portfolio," the analyst notes.
"Our LVMH model currently reflects +6% sales CAGR in 2022-25E and 32.8% EBIT margin for Wine & Spirits by 2026, which is consistent with MH's long-term sales ambition. MH is targeting a long-term EBIT margin in line with the level seen in recent years (31% past five-year average)," Stifel adds, before noting that management "will adjust the cost base swiftly when and if demand conditions become difficult".
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.