Q3 15 analysts' meeting and conference call feedback: valuation still demanding

We reiterate our Sell rating and shave our DCF-derived fair value to EUR60 from EUR61 as we fine-tune our adj. EPS ests. by -2% for 2016-17 with updated forward fx assumptions (EUR/USD 1.14 vs. 1.12). The analysts’ meeting and the conf. call revealed that Q4 15 may benefit from better trends in Asia, while sales productivity is expected to help DS reach its FY15 non-IFRS operating margin target (+1ppt lfl). However, we do not see strong-enough catalysts which could be really positive on the share price, since it already prices in demanding growth assumptions in our view.

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