(AOF) – UBS remains Neutral on the Pernod Ricard share but has lowered its price target from 188 to 167 euros.
“We believe that Pernod Ricard will likely struggle to achieve the low end of its medium-term organic growth target range of 4-7% in FY 2024 (+3% versus a consensus of +4%). Even if the company does not disappoint the consensus, 2024 growth benefits from the destocking of the fourth quarter of fiscal 2023 in the United States; and by another weak Chinese year, which, in our opinion, masks the underlying weakness on these key markets”, explains UBS to justify its decision.
“However, with the stock now trading in line with European commodities, and at a 10% discount to Diageo, we believe these headwinds are reflected in the valuation,” observes UBS.
© 2023 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
