Pernod Ricard: Oddo still a buyer after results
(CercleFinance.com) - Oddo BHF maintains its "buy" recommendation and target price of 164 euros for Pernod Ricard, emphasising a cautious, albeit serene tone during the conference call following its annual results.
In particular, the broker says that at the EBIT level, the cost discipline observed should be maintained, while the group does not expect any positive change in raw material costs.
Analysts believe that the share's current valuation (which they estimate is trading at a 2021 P/E of around 22x, representing a slight discount relative to its three-year average) is relatively undemanding in view of the potential rebound in 2020-21 in both sales and EPS, the analyst adds.
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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.
In particular, the broker says that at the EBIT level, the cost discipline observed should be maintained, while the group does not expect any positive change in raw material costs.
Analysts believe that the share's current valuation (which they estimate is trading at a 2021 P/E of around 22x, representing a slight discount relative to its three-year average) is relatively undemanding in view of the potential rebound in 2020-21 in both sales and EPS, the analyst adds.
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.