1058 GMT - Investors may be gaining confidence in the spirits industry, Edward Mundy at Jefferies says, after LVMH's drinks division beat sales expectations. Helping counterbalance a slide in the French luxury titan's mainstay fashion business, the wines and spirits unit notched organic sales growth of 6% over the third quarter to 1.43 billion euros, driven by a recovery in champagne and momentum in Hennessy cognac. Challenges remain in the spirits sector, but stock valuations look "undemanding," Mundy writes in a note. "We see scope for a re-rating as investor confidence increases that the worst is behind."