While maintaining its 'hold' recommendation on Rémy Cointreau in the absence of identified short-term catalysts, Stifel has lowered its target price from 115 to 110 euros, in the wake of a 3% reduction in its earnings estimates.

Ahead of the business update on January 24, it believes that 'the third quarter of 2023-24 is likely to be weak again, showing a sequential deterioration compared to the second quarter, when organic sales were already down 11%'.

'China and Europe deteriorated sequentially, without this being offset by a sequential improvement in the US from a low base', adds the broker in its note on the spirits house.

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