Remy Cointreau rises as hopes on US trends outshine gloomy outlook
** Shares in Remy Cointreau RCOP.PA rise 5.8% in very wobbly trade as hopes on U.S. trends reversal outshine the below-expectations FY outlook
** Remy's H1 oper profit falls 17.6% LFL, less than feared, but the spirits maker sees worse-than-expected FY organic sales (-15% to -18%), and organic current oper margin of between 21%-22%
** Asked about the wobbly trade, Bernstein analyst Trevor Stirling describes a massive tension between big hit to consensus EPS and optimism that maybe the U.S. sell-out trends are bottoming
** In an investor call, Remy Cointreau's CEO says, however, that it has reached the bottom in the U.S. and it's time to prepare for a recovery, even if the challenges are far from over
** "Looks like the latter is winning," Stirling says
** "Investors need confidence that the earnings downgrade cycle is complete and that mid-term growth prospects both for the cognac category and the business," Jefferies analysts say in a note, adding the long-term story remains attractive
** Up to the previous session's close, the shares lost 50.1% YTD
($1 = 0.9490 euros)
Reporting by Dimitri Rhodes
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
