TFF: TP ICAP Midcap starts tracking as a seller
(CercleFinance.com) - On Monday TP ICAP Midcap announced that it had begun to track TFF shares with a "sell" rating and target price of E25.
5, citing the company's undeniable quality, but questionable business momentum.
The broker says that Tonnellerie François Frères, the world leader in oak barrels, has historically positioned itself in the wine market, particularly in the upmarket segment, before diversifying into the spirits market, first with scotch in 2008, then with bourbon in 2016.
This diversification is proving a resounding success, with the Spirits division accounting for almost 60% of 2023/24 sales, particularly in the Bourbon segment, which grew sales from 0 to E200m between 2016 and 2023, analysts point out.
TP ICAP nevertheless points out that the wine market today seems to be facing a number of headwinds, with consumption at half-mast for many years, particularly in historic wine-producing countries (France, Italy, Spain), no longer offset by growth in more recent markets, such as the US or China.
The investment services provider also points to production at a low point, disrupted by increasingly frequent climatic events.
Regarding the bourbon segment, the group's main growth driver since its launch in 2016, the sector should see its first year of decline in 2024/25, it argues.
Despite the group's solid fundamentals and the share's decline this year, the lack of visibility weighing on the end markets (wine, bourbon, scotch) in the near future leads us to be cautious, TP ICAP Midcap summarises.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
5, citing the company's undeniable quality, but questionable business momentum.
The broker says that Tonnellerie François Frères, the world leader in oak barrels, has historically positioned itself in the wine market, particularly in the upmarket segment, before diversifying into the spirits market, first with scotch in 2008, then with bourbon in 2016.
This diversification is proving a resounding success, with the Spirits division accounting for almost 60% of 2023/24 sales, particularly in the Bourbon segment, which grew sales from 0 to E200m between 2016 and 2023, analysts point out.
TP ICAP nevertheless points out that the wine market today seems to be facing a number of headwinds, with consumption at half-mast for many years, particularly in historic wine-producing countries (France, Italy, Spain), no longer offset by growth in more recent markets, such as the US or China.
The investment services provider also points to production at a low point, disrupted by increasingly frequent climatic events.
Regarding the bourbon segment, the group's main growth driver since its launch in 2016, the sector should see its first year of decline in 2024/25, it argues.
Despite the group's solid fundamentals and the share's decline this year, the lack of visibility weighing on the end markets (wine, bourbon, scotch) in the near future leads us to be cautious, TP ICAP Midcap summarises.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.