Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com - CLSA downgraded Emperador Inc. (PSE:EMP) from Hold to Underperform on Tuesday, slashing its price target to PHP6.61 from PHP17.00 amid concerns over weak global whisky demand and tariff impacts.
The downgrade reflects CLSA’s expectation that Emperador’s whisky business will face continued weakness globally, with margins further pressured by the 10% U.S. tariff on Scotch whisky exports. These factors led the firm to reduce its 2025 and 2026 forecasts by 18.5% and 29.1% respectively.
CLSA noted that while Emperador’s brandy business in the Philippines should recover as discretionary spending improves, this recovery will likely be gradual due to "rising health consciousness among younger people." The firm’s new price target is based on a target 2026 price-to-earnings ratio of 14.7x.
The significant price target reduction of over 61% signals CLSA’s substantially diminished outlook for the spirits maker. The firm’s previous PHP17.00 target has been replaced with the much lower PHP6.61 figure under what it described as a "new methodology."
Emperador, which owns whisky brands including The Dalmore and Jura, faces particular challenges from the U.S. tariff situation, which directly impacts its Scotch whisky export business. The company’s performance outlook now reflects both domestic consumption patterns and international trade headwinds.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.