Diageo: Oddo BHF no longer a buyer.
(CercleFinance.com) - In a sector report, Oddo BHF believes that spirits stocks present "valuations that are too generous".
As such, the broker has downgraded its last buy rating it had in the sector - on the Diageo stock - to "neutral".
"The market's optimism does not convince us and we fear pressure on margins that is difficult to compensate by prices without having an impact on volumes. We are no longer buyers of the stock, as its valuations are too generous relative to fundamentals" analysts said.
In the specific case of Diageo, whose share price has risen by over 20% y-t-d in London, Oddo BHF deems that the stock's upside potential is now exhausted.
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.
As such, the broker has downgraded its last buy rating it had in the sector - on the Diageo stock - to "neutral".
"The market's optimism does not convince us and we fear pressure on margins that is difficult to compensate by prices without having an impact on volumes. We are no longer buyers of the stock, as its valuations are too generous relative to fundamentals" analysts said.
In the specific case of Diageo, whose share price has risen by over 20% y-t-d in London, Oddo BHF deems that the stock's upside potential is now exhausted.
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.