Remy Cointreau: Bernstein upgrades stock
(CercleFinance.com) - On Friday Bernstein upgraded its rating on Rémy Cointreau shares from "underperform" to "market perform", mainly citing valuation reasons.
In a study of the European alcoholic beverages sector, the broker points out that Rémy Cointreau's share price has fallen by 23% this year - the worst performer in its sector - while its earnings outlook has improved by more than 9% at the same time, conversely the best performance in its sector.
Following this correction, Bernstein points out that the French group's stock is now only trading at a 60% premium to sector majors, compared to 100% previously.
While the analyst notes that its premium over the MSCI Europe index is still 130%, he stresses that the share's recent decline enables it to trade at levels that are in line with its historic averages, while its EPS is expected to rise by 15%, which leads him to believe that the stock is now fairly valued.
The broker has reduced its corresponding target price from 180 euros to 170 euros (current price about 168 euros, +1.8%).
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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.
In a study of the European alcoholic beverages sector, the broker points out that Rémy Cointreau's share price has fallen by 23% this year - the worst performer in its sector - while its earnings outlook has improved by more than 9% at the same time, conversely the best performance in its sector.
Following this correction, Bernstein points out that the French group's stock is now only trading at a 60% premium to sector majors, compared to 100% previously.
While the analyst notes that its premium over the MSCI Europe index is still 130%, he stresses that the share's recent decline enables it to trade at levels that are in line with its historic averages, while its EPS is expected to rise by 15%, which leads him to believe that the stock is now fairly valued.
The broker has reduced its corresponding target price from 180 euros to 170 euros (current price about 168 euros, +1.8%).
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.