MS starts Lindt with "overweight" seeing plenty of runway for growth

Chocoladefabriken Lindt & Spruengli AG

11/09/2018 07:56

** Morgan Stanley launches the coverage of Swiss chocolate
maker  LISP.S  with "overweight", citing sector leading organic
growth and increasing returns
    ** "Despite being the premium leader (~30% share), Lindt
only has ~5% total chocolate share, implying plenty of runway
for growth"
    ** Broker's PT set at CHF 8,000 implies a 20% upside to
current price level; MS points to inflecting US top line and
margin driving further potential upside
    ** The brokerage says that quality justifies valuation
premium and sees co well-positioned to capitalise on structural
trends 
    ** Its gifting/indulgence aspect positions Lindt well to
navigate health/wellness trends affecting the sector, it adds

 ((pawel.goraj@tr.com))