Pernod Ricard: at the top of the CAC40

Photo credit © Société Pernod-Ricard

( — In a sharply rising market this weekend, Pernod Ricard jumped 5.4% to 180.8 euros. The stock is boosted by a Societe Generale rating that has gone ‘buy’ on the stock, citing optimism that international distillers will be better able to navigate the current inflationary environment than other oil-linked players. basic consumer products. The French group like other spirits companies, has higher gross margins and less dependence on raw materials, and also enjoys other advantages at a time when the environment is more difficult for all industries, writes the analyst.

Aged stock is a large part of the raw materials for distillers, mitigating the impact of higher costs; spirits are also an infrequent purchase and an affordable form of luxury. Like luxury players, spirits groups have quite significant pricing power. SocGen maintains its preference for Diageo over Pernod Ricard for the time being, but is generally positive on both stocks. The target is set at 204 euros.


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