Campari: Oddo considers the 'valuation too optimistic'.
(CercleFinance.com) - Oddo is to issue a Reduce rating on the Campari share with a target price of 5.
2 euros. The analyst firm indicates that the group has not revealed any specific objectives in terms of synergies with Grand Marnier, suggesting that visibility is reduced.
“In addition to an over-optimistic valuation with no new support in the short term (the reduction of financial costs and corporation tax already being incorporated in the price), there is a risk of disappointment in terms of the integration of Grand Marnier, strong dependence on Europe for Aperol, and an absence of new growth in China” explains Oddo.
“In Europe Grand Marnier has more of an image of an ingredient for desserts than of an alcoholic drink, and is unable to represent a growth market over the short- and medium term” considers the research firm.
“China remains a potential new growth market for the industry, albeit always at the mercy of the Chinese authorities. Whatever the case, Campari will not be able to benefit from this”.
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.
2 euros. The analyst firm indicates that the group has not revealed any specific objectives in terms of synergies with Grand Marnier, suggesting that visibility is reduced.
“In addition to an over-optimistic valuation with no new support in the short term (the reduction of financial costs and corporation tax already being incorporated in the price), there is a risk of disappointment in terms of the integration of Grand Marnier, strong dependence on Europe for Aperol, and an absence of new growth in China” explains Oddo.
“In Europe Grand Marnier has more of an image of an ingredient for desserts than of an alcoholic drink, and is unable to represent a growth market over the short- and medium term” considers the research firm.
“China remains a potential new growth market for the industry, albeit always at the mercy of the Chinese authorities. Whatever the case, Campari will not be able to benefit from this”.
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.