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Investing.com - RBC Capital upgraded Davide Campari-Milano Spa (BIT:CPR) from Underperform to Sector Perform with a price target of EUR5.80 on Monday.
The upgrade comes as RBC believes Campari is on a "course of rehabilitation" despite ongoing uncertainty in the spirits sector. The firm noted that while Campari’s recent performance benefited from favorable weather conditions, the company is making progress in several areas.
RBC highlighted management’s commitment to brand building investments as a particularly positive development. Campari has guided its advertising and promotion spending to reach 17-17.5% of sales this year, supported by a cost containment program.
The research firm expressed confidence that with consistent investment, Campari can return to delivering approximately 4% revenue growth. This growth projection aligns with RBC’s expectations for the broader spirits sector.
This anticipated growth rate also matches Euromonitor’s mid-term sector growth forecast, suggesting Campari could perform in line with industry trends if it maintains its current strategic direction.
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