Campari: Jefferies raises target price

(CercleFinance.com) - Jefferies analysts have raised their target price for Italian spirits group Campari from 6.
5 euros to 7 euros on Friday, though they maintained a "hold" rating on the stock.

While seeing "long-term attractions" on the case, the broker also cites "low near-term visibility."

"Campari is a unique asset offering a leveraged play on the bitters cycle, where we see a continued attractive runway," Jefferies writes in a note.

The broker says that the company's "strong" balance sheet offers upside from value-accretive M&A, and also mentions the group's longer-term fundamentals and has the potential for a solid recovery.

However, Jefferies prefers to stay on the sidelines for the moment, given (1) low near-term earnings visibility and (2) a high valuation.

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