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Nomura Securities Maintains a 'Neutral' on Brown Forman (BF-B); Q2 Review

December 9, 2011 10:18 AM EST
BF-B Hot Sheet
Rating Summary:
    1 Buy, 0 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Nomura Securities maintains a 'Neutral' on Brown Forman (NYSE: BF-B) price target of $69.00.

Nomura analyst, Ian Shackleton, said, "The company reported a strong Q2 with organic revenue growth ahead of our expectations at 10.0% vs. our estimate of 5.0%, but we remain concerned about a potential slowdown into 2012. The company reduced its full-year guidance range for FY EPS to $3.45 to $3.70, vs. $3.45 to $3.85 previously, to reflect the negative impact of FX. We believe the company’s minimum net debt offers it the financial flexibility either to return capital to its shareholders or to become active in M&A. The stock historically has traded at a premium to its peers; it is trading on a calendar 2012E P/E of 20.7x vs. our spirits average of 15.8x."

For an analyst ratings summary and ratings history on Brown Forman click here. For more ratings news on Brown Forman click here.

Shares of Brown Forman closed at $80.07 yesterday, with a 52 week range of $62.14-$81.50.


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