Rémy Cointreau: Stifel still a buyer, reduces TP
(CercleFinance.com) - Stifel maintains its "buy" rating on Rémy Cointreau shares, although has cut its target price for them from E187 to E150, expecting the wine and spirits house to reduce its targets at its 27 October trading update.
"US cognac admittedly faces strong short-term challenges", the broker notes, in particular pointing to weaker demand and promotional intensity in lower categories, seeing a long-awaited recovery "most likely postponed to 2024".
"We continue to like the strong exposure to the highly profitable and oligopolistic cognac category", Stifel says, however, which also believes that "the earnings potential of the smaller Liqueurs & Spirits division is underestimated".
Copyright (c) 2023 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.
"US cognac admittedly faces strong short-term challenges", the broker notes, in particular pointing to weaker demand and promotional intensity in lower categories, seeing a long-awaited recovery "most likely postponed to 2024".
"We continue to like the strong exposure to the highly profitable and oligopolistic cognac category", Stifel says, however, which also believes that "the earnings potential of the smaller Liqueurs & Spirits division is underestimated".
Copyright (c) 2023 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.