Berenberg has issued an update on TFF Group (TFF: FP), reducing the price target from EUR 53.00 to EUR 46.00, while still recommending the stock as a Buy.
This adjustment follows TFF Group's first-quarter revenue report on September 12, which revealed earnings below expectations, particularly in the whisky division due to a downturn in the bourbon sector.
TFF Group's management has indicated that the company's sales are projected to fall short of the previously set goal of EUR 500 million. This outlook aligns with the company's July statement, which already hinted at low visibility into future performance.
The firm's CEO, Jérôme Francois, has acknowledged the upcoming fiscal year will likely present hurdles, especially for the wine segment, which is bracing for a subpar harvest in France in both yield and quality. The bourbon division is also expected to experience curtailed barrel purchases from customers.
Despite these setbacks, Berenberg's stance on TFF Group remains positive. The firm views the current challenges as potential buying opportunities for investors, emphasizing the company's strong management and the inherent growth prospects within its wine and bourbon brands.
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