Deutsche Bank on Wednesday cut its target price for Rémy Cointreau shares from 105 to 100 euros ahead of the publication of third-quarter sales for 2023-2024, scheduled for January 26.

The analyst - who maintains his 'keep' recommendation on the share - said he expected organic sales to decline by 25.3% in the quarter, including a 36.6% drop for cognac due to destocking in China.

He expects the group to maintain its forecast of a 15% to 20% organic decline in sales for the full year, with a controlled contraction in operating margin on ordinary activities.

According to Deutsche, performance at the end of the year should, however, be at the lower end of the forecast range, which should result in a sharper-than-expected decline in operating margin.

The intermediary thus expects a 19.8% organic decline in sales over the full 2023/2024 financial year, accompanied by a 28.2% decline in operating margin on ordinary activities, again on an organic basis.

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