+------------------------------------------------------------------------------+
Remy May See ‘More Pain’ Ahead: Exane; Shares Up on Bid Report 2014-04-04 07:16:12.592 GMT
By Heather Burke April 4 (Bloomberg) -- Remy Cointreau may not have a recovery in China until 2015 at earliest, Exane said in note yday, cuts to underperform, sees “more pain” in future. * Up 5.5% after rising as much as 11% at the open as Betaville blog reported post-mkt yday Brown-Forman using advisers to consider Remy bid * Exane says shrs down ~40% in past 18 months mostly due to earnings changes, too early to call bottom * 5th time in 18 mos. recovery expectations pushed back * Last yr cognac margins 30%, sees margins declining to 25% in FY15 * Shrs don’t give floor at current prices * Next catalyst: 4Q sales April 17 * NOTE: 9-mo. cognac organic sales down 18.3%, co. said Jan. 21 * NOTE March 21: Remy 4Q May Still Be Hurt by China, Recovery May Lag Peers: UBS
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net To contact the editors responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net Nadine Skoczylas