(AOF) – The Rémy Cointreau share (-2.82% to 104.95 euros) shows one of the biggest drops in the SBF 120 after a downgrade in UBS. The analyst lowered his recommendation from Buy to Neutral by reducing his price target from 162 to 113 euros. “The stock could move sideways in the near term, as we expect sales to continue to decline organically in the first half of fiscal 2025. U.S. cognac sales have yet to find a bottom , which delays the timing of a potential technical restocking”, explains UBS to justify its decision.
UBS continues its argument asserting that Rémy Cointreau will face a difficult basis of comparison in China in the context of the recent macroeconomic slowdown. The specialist adds that trends in the Liqueurs and Spirits division are also deteriorating.
Ultimately, UBS anticipates a rebound in sales of Rémy Cointreau from the second half of 2025 and over the 2026 financial year due to restocking in the United States.
UBS notes that its earnings per share forecasts for fiscal years 2025 and 2026 will be 6% and 4% lower than consensus, respectively, mainly due to higher taxes and financial costs.
“For Rémy Cointreau to increase its organic turnover to 7%-9% in the medium term, the Liqueurs and Spirits segments must grow by 8% to 12%,” UBS further estimates.
© 2023 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
