Campari: Oddo remains cautious.

(CercleFinance.com) - On Friday morning Oddo renewed its "reduce" rating on Campari, maintaining its target price at 5.
2 euros, the day after the group announced interim results that were marked by a 4% decline in Ebit, along with sales, which, although up 13.5% in reported terms (+6.8% in organic terms) at 844.7 million euros, were below the 862 million euros expected by the broker.

While the group performed well in Northern Europe (+15.5%, against the consensus of just 7%), with sales stabilising in Germany and leaping 149% in Russia, with a very favorable comparison basis, revenues grew by only 3% in North America in Q2, representing a slowdown of 4.5 points sequentially, Oddo laments.

Campari is counting on a new advertising campaign launched in Q2 to stabilise its sales, "which still needs to be demonstrated in the US market's current context," said the broker, according to which the target 12 months rolling Ebitda of 47 million euros for Grand Marnier initially also seems "to have been postponed until the end of 2017".


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