DVCMY - Davide Campari-Milano: Strong Beverage Business Trading High
2024-01-27 06:49:32 ET
Summary
- Campari’s revenue has grown at a CAGR of 7%, driven by positive pricing action, industry trends toward premium products, and strong underlying demand.
- Margin improvement at an EBITDA level has been minimal, which is slightly disappointing given management has shown an ability to increase GPM%.
- Campari has good exposure to growing geographies, creating the potential for healthy long-term growth, although we do not expect this to exceed the current level.
- Campari is trading at a premium to its peers and historical average, which is unjustifiable in our view.
Investment thesis
Our current investment thesis is:...
Davide Campari-Milano: Strong Beverage Business Trading High