(CercleFinance.com) – While confirming its ‘hold’ recommendation on Pernod Ricard, Stifel lowers its price target by 8% to 170 euros, in the wake of a reduction of around 6% in its results forecasts for the French spirits group.
The broker forecasts a 4.4% decline in sales in the second accounting quarter and a 50 basis point contraction in organic EBIT margin in the first half of 2023-24, but believes that full-year results ‘should look less ugly’.
‘The European spirits sector continues to lack short-term catalysts. In an uncertain macro and consumption context, the bases of comparison and a potential end to destocking are the rare supporting factors identified,’ he continues.
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