Pernod Ricard: Oddo BHF still on hold
(CercleFinance.com) - Oddo BHF maintains its 'neutral' rating on Pernod Ricard shares, with an unchanged target price of E145.
At 15x P/E NTM, the share's valuation is at an historically low point for a group with quality fundamentals in a buoyant sector, the analyst points out.
Oddo BHF still expects a 14% drop in 23/24e EPS. We are slightly revising our forecasts for FY 24/25, on which the sell-side consensus is still too optimistic in our view, it adds.
The broker is also aware that the medium-term question remains that of the degree of confidence in the assumption of a return to growth next year.
This prospect could prompt some investors to consider the current P/E level as a potential entry point, it says, while reminding us that caution is still called for, particularly in view of the almost systematic slump in expectations over the past few months.
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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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
At 15x P/E NTM, the share's valuation is at an historically low point for a group with quality fundamentals in a buoyant sector, the analyst points out.
Oddo BHF still expects a 14% drop in 23/24e EPS. We are slightly revising our forecasts for FY 24/25, on which the sell-side consensus is still too optimistic in our view, it adds.
The broker is also aware that the medium-term question remains that of the degree of confidence in the assumption of a return to growth next year.
This prospect could prompt some investors to consider the current P/E level as a potential entry point, it says, while reminding us that caution is still called for, particularly in view of the almost systematic slump in expectations over the past few months.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.