Oddo BHF has downgraded its recommendation on Pernod Ricard from 'outperform' to 'neutral', with a price target reduced from €190 to €150, and now expects EPS for fiscal 2023-24 to fall by 14.3% (instead of 11.1%).

The catalysts we expected to support Pernod Ricard's share price performance, namely the recovery in the Group's key markets such as China and the United States, are not materializing", notes the analyst.

Oddo BHF believes that the timeframe for the Group's growth recovery is regularly being pushed back, and that uncertainties over its timing should weigh on the stock's performance, and has therefore raised its beta to one, from 0.9 previously.

The research department does not see much downside potential for the stock, however, due to Pernod Ricard's recent underperformance relative to the spirits sector and a very low valuation level reflecting the current low visibility.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.