Rémy Cointreau: Bryan Garnier no longer a buyer.
(CercleFinance.com) - While adjusting its fair value from 97 euros to 100 euros the day after the group's annual results, Bryan Garnier has downgraded its rating on Rémy Cointreau from "buy" to "neutral," citing valuation reasons.
While it acknowledges that "Rémy Cointreau has the best growth profile in the sector and its premiumisation strategy is successful,” the broker cannot see any additional upside potential for the spirits group.
Bryan Garnier points out that the share has outperformed the market by 16% over the last three months and that it is now trading at a 2017-18 EV/EBIT multiple that is 50% above that of other luxury groups (including Hermès) and 24% above its peers.
Copyright (c) 2017 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.
While it acknowledges that "Rémy Cointreau has the best growth profile in the sector and its premiumisation strategy is successful,” the broker cannot see any additional upside potential for the spirits group.
Bryan Garnier points out that the share has outperformed the market by 16% over the last three months and that it is now trading at a 2017-18 EV/EBIT multiple that is 50% above that of other luxury groups (including Hermès) and 24% above its peers.
Copyright (c) 2017 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.