(CercleFinance.com) – The Pernod Ricard share continued its decline on Tuesday on the Paris Stock Exchange, still penalized by the lowering of recommendations from HSBC analysts, who yesterday switched to ‘lighten’ on the stock.
At 11:00 a.m., the spirits giant’s action fell by 0.2% while the CAC 40 index advanced by 0.4% at the same time.
Pernod had already stumbled 1.4% yesterday in the wake of HSBC’s downgrade, which believes that consensus estimates do not reflect the harsh reality of the current market environment.
‘Regarding the 2023/2024 financial year, we believe that the company will experience difficulty in achieving the revenue forecasts established by the consensus given the weakness of the American market and an unfavorable base effect in Europe linked to the exit from the Russian market’, explains the design office.
Analysts also consider that the group’s ambition to improve its margins will be put to the test given the current situation.
‘We still like Pernod’s brand portfolio, but we see a potential downside for the coming months,’ warns HSBC.
His opinion thus changes from ‘keep’ to ‘lighten’, with a price target reduced from 185 to 142 euros, suggesting a downside potential of around 10%.