Pernod Ricard shares are locked into a trading range. This phase will eventually have to end with a return of a clear trend. Investors should buy the stock at current prices near € 156 in order to target the € 170.
The group's high margin levels account for strong profits.
There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
The company is in debt and has limited leeway for investment
The company's earnings releases usually do not meet expectations.
The company's "enterprise value to sales" ratio is among the highest in the world.
The firm trades with high earnings multiples: 26.72 times its 2020 earnings per share.
Revenue estimates are regularly revised downwards for the current and coming years.
For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
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