CPR:MILDavide Campari-Milano N.V. Analysis

Campari trades at €6.33, sitting just above its calculated support of €5.87 and below the resistance of €6.77, with the 20‑day SMA (~€6.41) acting as a short‑term ceiling. The stock shows a bullish price trend but the MACD has turned bearish and the RSI sits at a neutral 51, suggesting limited upside momentum in the near term.
Fundamentally, the company delivers a solid 11% profit margin and a healthy free cash flow of €250 m, supporting its 1.6% dividend yield and a modest 22% payout ratio, indicating dividend sustainability. Valuation metrics point to modest undervaluation, with analysts forecasting a median target of €7.00 – roughly an 11% upside – and the DCF model implying the stock is priced below intrinsic value. However, revenue is contracting (-2.8%) and leverage is elevated (debt‑to‑equity ~70%), which tempers the upside and adds a layer of financial risk.