Pernod Ricard: preferred stock, according to SG.
(CercleFinance.com) - Société Générale (SG) analysts urge investors not to overestimate the negative FX impact for Pernod Ricard.
Maintaining their buy rating on the share of the French spirits group, which yesterday published its 2016/2017 accounts, analysts have raised their 12-month target price from 132 euros to 134 euros.
Admittedly, according to SG's research report, "FX guidance is set to impact FY18 EBIT by E125m due to the strong euro,” now that the euro has picked up - against the US dollar in particular. This detail came as an unpleasant surprise to investors, as the consensus was only expecting a negative impact of five million euros. SG has adjusted its earnings forecasts accordingly.
However, the research note also highlights the sound commercial performance of the Martell and Jameson brands, as well as those of the US and China: "but the underlying business is performing well” the report says.
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.
Maintaining their buy rating on the share of the French spirits group, which yesterday published its 2016/2017 accounts, analysts have raised their 12-month target price from 132 euros to 134 euros.
Admittedly, according to SG's research report, "FX guidance is set to impact FY18 EBIT by E125m due to the strong euro,” now that the euro has picked up - against the US dollar in particular. This detail came as an unpleasant surprise to investors, as the consensus was only expecting a negative impact of five million euros. SG has adjusted its earnings forecasts accordingly.
However, the research note also highlights the sound commercial performance of the Martell and Jameson brands, as well as those of the US and China: "but the underlying business is performing well” the report says.
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.