RCO
Strong growth in the Americas and optionality on Chinese recovery – but one to watch
Remy Cointreau’s share price has halved since the peak of 2012, predominantly from the
impact of China’s anti-corruption drive on cognac sales. We see this recent share reaction as
overdone, since the focus of Remy Cointreau’s growth has now switched to the Americas,
while sales in China appear to have plateau’d. While there is still some good upside in Remy
Cointreau on our metrics, this is as yet insufficient for us to rate it Buy on our ratings system
given our lower price target (cut to €59 from €73) . But with its current robust growth in the
Americas and a stabilising market in China, we think it is one to watch.