Bernstein Analysis
Conclusion – Time will tell…
Taking this all into account, Andrew Wood writes that going forward Bernstein sees no reason why these 4 dynamics should not continue.
He also points to the slow start to the new 3-year cycle in Q1 2015 when organic growth was 0.7%, which is below consensus expectations and its rivals.
“Management’s explanation of tough retail negotiations in Europe affecting shipments, with no concerns on sell-out and the promise of a rebound in Q2, seemed to ameliorate investor concerns,” says Wood.
“Time will tell if this was a one-off or the start of a new period of underperformance.”
