Campari: Deutsche Bank upgrades stock

(CercleFinance.com) - On Tuesday Deutsche Bank upgraded its rating on Campari shares from "hold" to "buy", citing "superior" growth and a "very reasonable" share price.


The broker - which has also raised its target price for the share from 10 euros to 12 euros - points out that the Italian spirits group's share price has fallen by 29% YTD, a consensus beating performance, better than in previous years and above that of its competitors.

Analysts note that the premium in terms of P/E at which Campari is trading compared to the rest of the consumer staples sector has thus returned to its lowest levels since 2017.

This divergence between valuation and business performance generates an attractive entry point for a company that has one of the best growth rates in the consumer staples sector in Europe, it concludes.

The share is currently up almost 2.5%? about twice the market, in Milan.



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