RBC Upgrades Campari, Calls Strategy 'Sensible'
RBC Capital Markets has decided to give Campari a bit more credit, and it’s turning heads in the market. The investment bank has upgraded its rating on Campari, the company behind Aperol, moving it up from “underperform” to “sector perform.” In simpler terms, the analysts at RBC no longer see Campari lagging behind its peers but believe the company is back on a steadier path. They describe Campari as being “on a course of rehabilitation,” which suggests that the company’s latest moves are beginning to restore investor confidence.
The shift in sentiment is largely tied to Campari’s strategy, which RBC now considers more “sensible.” What this really means is that the company has been putting greater focus on building its brands and making investments that strengthen its long-term positioning. At the same time, market expectations for growth have settled into a more realistic range, so there’s less pressure on Campari to chase overly ambitious targets. This balance between investment and reasonable goals is what makes RBC believe the company is back on track.
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RBC analysts went on to say that, with consistent investment, Campari could return to delivering about 4% revenue growth, which would be in line with the broader spirits industry. That’s an encouraging sign, especially given that Campari had faced concerns in the past about whether its growth could keep up with other global players in the sector.
Valuation also plays a role here. The stock is currently trading at a level that RBC admits is meaningfully above some of its peers. However, when compared to Campari’s own 10-year average, the shares are still trading at a discount. This nuance is important: while Campari may look a little pricey next to competitors, it isn’t overstretched when viewed through the lens of its long-term history. RBC, therefore, kept its price target steady at 5.80 euros, or roughly $6.81.
Looking at the wider picture, Campari’s stock continues to attract a mix of opinions from analysts. According to LSEG data, out of 22 analysts covering the stock, eight currently rate it a “strong buy” or “buy,” while 11 suggest holding, and three remain negative with a “strong sell” or “sell” recommendation. This spread reflects both optimism about Campari’s turnaround and caution about its valuation.
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