Campari: Oddo considers stock overvalued
(CercleFinance.com) - Oddo has confirmed its Reduce rating up on the share, while it maintains its target price of 5.
70 euros. Analysts believe that there could well be a pleasant surprise regarding growth in the group's organic EBIT margin over 2017, thanks to a better control of A&P expenses in Q4.
However, we still believe that Campari's valuation remains excessive (trading at a premium of 36% vs. European peer average), in view of: i/ fragile prospects - particularly for Aperol in Germany and ii/ an EBIT margin that is at risk in 2018, due to changes in raw materials prices (Agave for Tequila) and FX factors," Oddo says.
Campari will unveil its 2017 results next Tuesday. Oddo expects 2017 sales of 1,779 million euros, up 3% as reported and up 5.7% in organic terms: Oddo analysts are 1.7% above the consensus (1,811 million euros, +5.8% in organic terms).
Copyright (c) 2018 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.
70 euros. Analysts believe that there could well be a pleasant surprise regarding growth in the group's organic EBIT margin over 2017, thanks to a better control of A&P expenses in Q4.
However, we still believe that Campari's valuation remains excessive (trading at a premium of 36% vs. European peer average), in view of: i/ fragile prospects - particularly for Aperol in Germany and ii/ an EBIT margin that is at risk in 2018, due to changes in raw materials prices (Agave for Tequila) and FX factors," Oddo says.
Campari will unveil its 2017 results next Tuesday. Oddo expects 2017 sales of 1,779 million euros, up 3% as reported and up 5.7% in organic terms: Oddo analysts are 1.7% above the consensus (1,811 million euros, +5.8% in organic terms).
Copyright (c) 2018 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.