Remy Cointreau: Morgan Stanley downgrades buy rating

(CercleFinance.com) - Morgan Stanley has downgraded its buy ("outperform") rating on the share of the French spirits group Rémy Cointreau, having adopted a neutral stance ("weight in line").

Alongside this downgrade, the broker has cut its target price for the share from 140 euros to 120 euros.

Analysts recognise that Rémy Cointreau is a prime vehicle to play the increasing popularity of cognac, which represents nearly 85% of the group's earnings. Behind Hennessy and Martell, the group has 12% of the global cognac market and 20% of the Chinese market, where it stands out with high-end products, such as its "Louis XIII" cognac.

However, the consequences of the trade war from the US, the Chinese slowdown and ongoing unrest in Hong Kong should weigh on its growth.


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