Coverage of Remy Cointreau has been initiated by Citigroup Smith Barney. The US broker has initiated the shares with a 'buy' rating and a price target of €42.5.

Remy's "unique luxury portfolio" offers a 20% discount to its peers, Citigroup said, which it thinks is "unjustified." The new management team is capable of unlocking a €6 per share value in Remy's underperforming Champagne division, the broker added.

Citigroup also said that Remy offers double exposure to China, which is a market with 20% forecast growth.