Jefferies starts Italian 'awakening beauty' Intercos with 'hold'
09/12/2021 08:11
** Jefferies initiates coverage of Italian beauty products
manufacturer Intercos ICOS.MI with "hold" and PT of 16 euros
($18.12)
** Broker says Intercos is "unique asset in Europe", as it
acts like complete innovation partner to its customers rather
than just co-manufacturer
** Jefferies adds cosmetics firm is well-positioned to serve
both incumbents and disruptors in industry and is geared to
benefit from global recovery in makeup
** Brokerage says order intake in Sept-Oct supports its
forecasts of 6%, 5.1% and 8.5% growth in Like-For-Like sales in
Q4, 2021 and 2022, respectively
** However, all these factors are already priced in over 20%
share price appreciation since IPO and more than 50% valuation
premium to Korean outsourcer peer group
** It adds supply chain issues are set to impact near-term
margin progression, with low visibility on levels of raw and
pack availability reported by management in Q3 posed to persist
during Q4 and beyond
($1 = 0.8828 euros)
(Reporting by Federico Maccioni)
((Federico.maccioni@thomsonreuters.com))