Nomura Securities Maintains a 'Neutral' on Brown Forman (BF-B); Q3 Review
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Price: $28.42 +1.39%
Rating Summary:
5 Buy, 20 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 20 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Brown Forman (NYSE: BF-B) price target of $69.00.
Analyst, Ian Shackleton, said, "Q3 diluted EPS $0.93 vs prior year US$0.96 was in line with Nomura (NE $0.95), although lighter than street at $1.01. Stronger-than-expected forex headwinds, de-stocking following advanced shipments in Q2, and margin pressures from both higher cogs and A&P spending were the key drivers of the slower momentum. The company narrowed full-year guidance range for FY EPS to $3.50 to $3.65, vs. $3.45 to $3.70 previously. Our FY EPS estimate of $3.61 is unchanged. We believe the company’s minimum net debt offers it the financial flexibility to return capital to its shareholders or to become active in M&A. The stock historically has traded a premium to its peers; it is currently trading on a calendar 2013E P/E of 19.9x vs. spirits sector avg 15.7x."
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 $80.09 yesterday.
Analyst, Ian Shackleton, said, "Q3 diluted EPS $0.93 vs prior year US$0.96 was in line with Nomura (NE $0.95), although lighter than street at $1.01. Stronger-than-expected forex headwinds, de-stocking following advanced shipments in Q2, and margin pressures from both higher cogs and A&P spending were the key drivers of the slower momentum. The company narrowed full-year guidance range for FY EPS to $3.50 to $3.65, vs. $3.45 to $3.70 previously. Our FY EPS estimate of $3.61 is unchanged. We believe the company’s minimum net debt offers it the financial flexibility to return capital to its shareholders or to become active in M&A. The stock historically has traded a premium to its peers; it is currently trading on a calendar 2013E P/E of 19.9x vs. spirits sector avg 15.7x."
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 $80.09 yesterday.
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