Rémy Cointreau: share rises on broker upgrade

(CercleFinance.com) - Rémy Cointreau's share price was one of the biggest risers on the SBF 120 index on Thursday morning on the Paris Bourse, boosted by a rating upgrade from Deutsche Bank, which recommends invstors to take advantage of the stock's recent bout of weakness.


At 9.40am, the spirits group's shares were up 3.6%, while the SBF 120 index gained 0.6% at the same time.

Deutsche Bank announced this morning that it had upgraded its recommendation on the stock from 'hold' to 'buy', with a target price set at E112, representing upside potential of 24% from the previous day's closing price.

In his note, the analyst cites an improving trend in the group's deliveries to the US market, as well as a more favorable dynamic in cognac sales in China.

According to his calculations, the share could be worth up to E234, or two and a half times its current share price.

Deutsche, which refers to a 'unique' and 'quality' stock in a sector considered 'attractive', believes that the recent underperformance of the share represents an interesting entry point for investors with a view to a future revaluation.

On the stockmarket, YTD Rémy shares are still down around 21%, compared with an 8% gain for the SBF 120.


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