Pernod Ricard: Deutsche Bank downgrades stock
(CercleFinance.com) - On Monday Deutsche Bank downgraded Pernod Ricard shares from "buy" to "hold" reducing its target price for them from 233 euros to 198 euros.
In a study of the European consumer goods sector, the German investment bank justified its decision by the delay in the spirits group's advertising and promotional spending.
"We continue to see Pernod as one of the best positioned companies in European Staples due to combination of attractive category and country exposure within Spirits," it says.
"However, Pernod has held A&P broadly flat while Diageo, Campari and Remy have all increased A&P/sales in recent years," analysts add.
Copyright (c) 2022 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.
In a study of the European consumer goods sector, the German investment bank justified its decision by the delay in the spirits group's advertising and promotional spending.
"We continue to see Pernod as one of the best positioned companies in European Staples due to combination of attractive category and country exposure within Spirits," it says.
"However, Pernod has held A&P broadly flat while Diageo, Campari and Remy have all increased A&P/sales in recent years," analysts add.
Copyright (c) 2022 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.