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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