(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.
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