UBS has reiterated its Neutral rating on Remy Cointreau, with a target price of €65, following the company's first half results for 2024-25.

Despite EBIT surpassing consensus by 10%, the outlook for FY25 suggests a potential downgrade of 8% to 17% on current EBIT expectations, while medium-term targets remain unchanged.

The share price reaction reflects positive comments on recovery after a period of sequential exhaustion.

Remy Cointreau projects a decline in organic sales of 15% to 18% for 2024-25, with a current operating margin forecast of 21% to 22% in organic terms.

The Group has restated its long-term financial targets for 2029-30, aiming for a Gross Margin of 72% and a Current Operating Margin of 33%, based on 2019-20 exchange rates and scope of consolidation.

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