Pernod Ricard: Credit Suisse cuts target price
(CercleFinance.com) - On Monday Credit Suisse lowered its target price for Pernod Ricard shares from 165 euros to 160 euros, due to concerns about the pace of the recovery, which it fears will be "uneven".
In its comments, the broker explains that it now only forecasts organic growth in operating profit (Ebit) of 2.5% for FY 2020/2021, compared with 4.9% until now, due to the increased investments made by the French group to support the recovery of its business.
Credit Suisse - which now prefers brewers and bottlers to the detriment of spirits producers - nevertheless maintains its "outperform" rating on the Pernod Ricard share, which remains its best pick in the spirits sector, given its dynamic momentum in terms of market share and in emerging countries compared to Diageo, along with its "significant" discount compared to Remy Cointreau and Campari.
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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 its comments, the broker explains that it now only forecasts organic growth in operating profit (Ebit) of 2.5% for FY 2020/2021, compared with 4.9% until now, due to the increased investments made by the French group to support the recovery of its business.
Credit Suisse - which now prefers brewers and bottlers to the detriment of spirits producers - nevertheless maintains its "outperform" rating on the Pernod Ricard share, which remains its best pick in the spirits sector, given its dynamic momentum in terms of market share and in emerging countries compared to Diageo, along with its "significant" discount compared to Remy Cointreau and Campari.
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.