Pernod Ricard: Bryan Garnier adjusts target price.
(CercleFinance.com) - In a report on the spirits sector, Bryan Garnier has confirmed its "buy" rating on the Pernod Ricard stock, adjusting its fair value to 120 euros, mainly to take into account negative FX factors.
The broker believes that the group's operating margin in 2016-17 is expected to fall slightly in organic terms, due to cost inflation in India, higher agave prices and an overall pricing environment that remains lackluster.
The broker is therefore reducing its estimate for FY organic growth in operating profit from +3.7% to +3.2%, a forecast that remains within management's target range of +2% to +4%.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker believes that the group's operating margin in 2016-17 is expected to fall slightly in organic terms, due to cost inflation in India, higher agave prices and an overall pricing environment that remains lackluster.
The broker is therefore reducing its estimate for FY organic growth in operating profit from +3.7% to +3.2%, a forecast that remains within management's target range of +2% to +4%.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.