Pernod Ricard: Oddo adjusts target price
(CercleFinance.com) - Oddo BHF maintains its "buy" recommendation on the Pernod Ricard share, having nudged up its target price from 163 euros to 164 euros, after the group increased its forecast for 2019-20 profit from recurring operations to an organic decline of 15%, compared to -20% expected previously.
According to the analyst, the share is trading at a 2021 P/E of around 22x, a valuation level that seems relatively undemanding, in view of the rerating of certain peers and the prospects for a rebound in sales and EPS at Pernod Ricard.
The broker has raised its EPS estimates for the French spirits group for 2019-20 (+7%) and 2020-21 (+1%), although has left its estimate virtually unchanged for 2021-22.
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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.
According to the analyst, the share is trading at a 2021 P/E of around 22x, a valuation level that seems relatively undemanding, in view of the rerating of certain peers and the prospects for a rebound in sales and EPS at Pernod Ricard.
The broker has raised its EPS estimates for the French spirits group for 2019-20 (+7%) and 2020-21 (+1%), although has left its estimate virtually unchanged for 2021-22.
Copyright (c) 2020 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.