Rémy Cointreau: Oddo BHF still a seller, cutting target pric
(CercleFinance.com) - Oddo BHF reinstates its "reduce" rating on the Rémy Cointreau share, having shaved two euros from its target price of 87 euros to 85 euros, prior to the publication of the group's annual results on 4 June, which will be provide the group's new CEO with the opportunity to detail the strategic direction that he intends to follow.
The broker believes that the outperformance in terms of organic growth over the past 10 years, as well as the improvement in its operating margin, should tail off over the medium term.
Analysts say that this expected downturn makes the share's current 15% valuation premium in terms of 2021e EV/EBIT "unjustified" compared with the average of the four spirit groups it tracks.
Copyright (c) 2020 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.