Rémy Cointreau Shares Surge, Supported by Analysts
Rémy Cointreau's stock is up 2.7%, extending a weekly rebound of nearly 13%. Goldman Sachs and Barclays raised their price targets this Friday, in a context where the RSI reaches an overbought zone at 72.
Morning Trading Shows Strong Performance
Rémy Cointreau's stock is up 2.7% in mid-morning trading, reaching 41.28 euros. This movement extends the upward momentum that began earlier in the week, with the stock now showing a weekly increase of 11.84%. This improvement follows a strong rebound the previous day, where the stock had jumped 6.72% at mid-session, supported by better-than-expected results from American group Constellation Brands, an indirect competitor in the spirits sector. Technically, the stock is now trading above its 50-day moving average, set at 39.48 euros, a positive short-term signal. However, the RSI has reached 72, an overbought zone suggesting a possible consolidation ahead. The stock is also testing its key resistance at 40.20 euros, which was breached during the session, while the main support is at 35.38 euros. This positive momentum comes after three difficult months marked by a decline of 12.73%, with the stock still down 29.28% over the year.
Mixed Views from Investment Banks
This Friday, January 9, two investment banks released notes on Rémy Cointreau with contrasting positions. Goldman Sachs raised its price target from 48 to 50 euros while maintaining a neutral recommendation, whereas Barclays increased its target from 34 to 35 euros, still below the current price but in an upward movement. These revisions, although moderate, reflect an adjustment in valuations after the significant correction in recent months. However, analysts remain cautious due to the structural challenges the group faces. The half-year results published at the end of November showed a 13.6% organic decline in current operating income, accompanied by a downward revision of annual targets. The persistent deterioration of the Chinese market and a weaker-than-expected rebound in the United States weigh on the group's prospects. The 200-day moving average, located at 46.54 euros, remains well above the current price, confirming that the underlying trend is still bearish despite the ongoing technical rebound.
