Pernod Ricard: market cheers stock with broker upgrade

(CercleFinance.com) - On Friday Société Générale upgraded its rating on Pernod Ricard shares from "hold" to "buy" with a target price of 204 euros.


While it still prefers Diageo in the sector, the analyst is positive on both spirits groups, with both wanting to continue to grow their margins over the coming years.

In the case of Pernod, this ambition translates into an operating margin improvement target of around 50-60 bp p.a. over 2023-2025, analysts said.

In its comments, SG also points out that the French group is not present in the "low price" or even entry-level segment, but that it favours the high-growth "premium" and "ultra-premium" markets, where recessions usually have only a "temporary" impact.

Investors are indeed raising their glasses to the share too - it is currently up 6%, about twice the market's rise.


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