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On Thursday, Jefferies analysts raised the price target for Remy Cointreau (EPA:RCOP) SA (RCO:FP) (OTC: REMYY) stock to €70 from €65, while maintaining a Buy rating. Currently trading at $5.55, the stock has declined about 37% over the past year. The decision reflects expectations of a medium-term recovery in the cognac market, which is anticipated to benefit Remy Cointreau.
The analysts noted that despite the current low visibility on the timing of this recovery, the company’s cognac business appears to be stabilizing. They have not altered their organic estimates but increased their fiscal 2026 EBIT forecast by 4% due to a higher fiscal 2025 base.
Jefferies analysts suggested that an improvement in the tariff environment could further enhance earnings momentum for Remy Cointreau. Currently, the company’s shares are trading at 1.1 times inventory value, compared to a 10-year average of 4 times.
The report highlights the potential for Remy Cointreau to experience a positive shift in earnings as the cognac market recovers, aligning with the firm’s optimistic outlook on the sector’s medium-term prospects.
In other recent news, Barclays (LON:BARC) analyst Laurence Whyatt upgraded Remy Cointreau’s stock rating from Underweight to Equalweight, raising the price target to €39.00 from €34.00. This adjustment comes after Remy Cointreau’s fourth-quarter sales were reported as underwhelming, missing both consensus and Barclays’ projections. The company is optimistic about its outlook for FY26, anticipating double-digit growth in the U.S. market, driven by improved sell-out and restocking efforts. Remy Cointreau’s CFO, Luca Marotta, expressed confidence in the current consensus estimates, which project approximately 4.6% organic sales growth and around 4.3% organic profit growth. Barclays, however, views these figures as optimistic, noting they depend on favorable U.S. data trends and increased Chinese consumer spending. The estimates also assume effective management or elimination of existing tariffs, which could potentially increase. Despite these challenges, Barclays sees considerable upside risk for Remy Cointreau, similar to Pernod Ricard (EPA:PERP), if Chinese tariffs are reduced in the coming months. This potential for reduced tariffs contributed to the decision to upgrade the stock rating.
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