Campari: Oddo BHF maintains reduce rating.
(CercleFinance.com) - In a sector report, broker Oddo BHF is negative about the European spirits sector and has confirmed its recommendation that investors reduce their holdings in Campari.
"Valuations are too generous," their analysts say.
According to Oddo BHF, "the market's optimism does not convince us and we fear a pressure on margins that will be difficult to offset by prices without an impact on volumes. We hence have a reduce rating on the share, as its valuation is too high relative to fundamentals".
In the specific case of Campari, Oddo BHF believes that Grand Marnier, the French group bought out by the Italian last year, "should disappoint".
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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.
"Valuations are too generous," their analysts say.
According to Oddo BHF, "the market's optimism does not convince us and we fear a pressure on margins that will be difficult to offset by prices without an impact on volumes. We hence have a reduce rating on the share, as its valuation is too high relative to fundamentals".
In the specific case of Campari, Oddo BHF believes that Grand Marnier, the French group bought out by the Italian last year, "should disappoint".
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.