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On Wednesday, CFRA analyst Danny Yeo Sze Wai maintained a Hold rating on Remy Cointreau (EPA:RCOP) SA (RCO:FP) (OTC: REMYY) with a steady price target of EUR62.00. Yeo cited the company’s alignment with historical valuation metrics as the rationale behind the target, referencing a forward price-to-earnings (P/E) ratio of 21.7 times for the fiscal year ending March 2026, which is comparable to its historical average P/E of 21.5 times. According to InvestingPro data, the company currently trades at a P/E of 17.38x, with an impressive gross profit margin of 71.22%.
The analyst adjusted downward the earnings per share (EPS) estimates for the luxury spirits maker to EUR2.62 from EUR2.84 for the fiscal year 2025 and to EUR2.86 from EUR3.10 for the fiscal year 2026. This revision follows Remy Cointreau’s reported 17.8% decline in organic sales for the first nine months of the fiscal year 2025, with the third quarter experiencing a sharper drop of 21.5%. InvestingPro data shows the company maintains strong financial health with a current ratio of 2.64 and operates with moderate debt levels.
Despite the downturn in the third-quarter sales, Remy Cointreau’s performance was noted to be relatively resilient compared to the consensus estimates, which had anticipated a steeper organic growth decline of 23.3% for the quarter and 18.3% for the nine-month period.
Remy Cointreau’s confirmation of its full-year 2025 organic sales guidance at the lower end of its previously stated range (between a 15% to 18% decline) was expected to exert downward pressure on share sentiment. This outlook suggests potential downside compared to the current consensus target of a 16.6% decrease in sales.
Looking ahead, Yeo highlighted potential positive factors for Remy Cointreau, including volume improvement, which could serve as a catalyst for the stock. This potential uplift is further supported by the expectation of more realistic market expectations as the company laps the high comparative figures from previous periods. InvestingPro subscribers can access 8 additional key insights about Remy Cointreau, including its 25-year dividend payment streak and detailed valuation metrics.
In other recent news, Remy Cointreau is expected to face challenges in its third-quarter fiscal year 2025 results, with performance issues anticipated in both China and the United States. Bernstein analysts maintain an Outperform rating on the company’s stock, adjusting the price target to EUR100.00 from the previous EUR99.00. Despite the projected difficulties, the firm believes Remy Cointreau is set to meet its full-year guidance, forecasting a decline in organic sales growth between 15 to 18 percent.
A gradual improvement is anticipated in the fourth quarter, with a strong recovery expected in the U.S. market. The timing of this rebound, however, remains uncertain. Remy Cointreau continues to hold impressive gross profit margins of 71.22% and operates with a moderate debt level.
The Bernstein analysts believe the company’s stock is undervalued, highlighting the value of Remy Cointreau’s inventory as an asset. They also note the company’s consistent 25-year track record of dividend payments and a healthy current ratio of 2.64. Despite these strengths, they caution that the third-quarter results may not be particularly impressive. The analysts’ commentary suggests a cautiously optimistic stance on the company’s ability to navigate current challenges and capitalize on potential recovery, especially in the U.S. market. These are among the recent developments for Remy Cointreau.
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