Shares in French group Remy Cointreau have been downgraded to 'sell' from 'hold' by Goldman Sachs on increased risks, the broker has said in a note to clients.

Goldman noted that the group has now exited the low value end of the market while reducing gearing, but added that, while the stock trades on a premium to peers, the cash returns are still well below those of its peers.

The financial firm lifted its target price to EUR34 from EUR32, and said it sees 'significant impediments' to Remy's stock playing a part in any further industry consolidation.