Pernod Ricard: Oddo cuts target price
(CercleFinance.com) - Oddo BHF maintains its Neutral rating on the stock, although lowers its target price for it to E125 (from E140) following a company contact.
Group sales are expected to decline further in Q2 24/25: -2.6% vs. -5.9% in Q1 24/25. A sequential improvement, indeed, although still no recovery in sight, in addition to a still difficult and uncertain context in both the US (20% of group sales) and China (10% of group sales), the broker says.
This downward revision is mainly due to China. We are now expecting a -25% organic decline in sales in Q2 24/25, compared with -10% previously, Oddo BHF explains.
In Europe, we understand that inflation continues to affect consumption, in addition to the unfavorable weather conditions which, in Q2 24/25, continue to affect markets such as Spain. We expect Q2 sales to be stable on an organic basis, compared with +2.3% previously, the analyst adds.
Oddo BHF now expects organic sales and EBIT to fall by 1.6% and 2.5% respectively, representing a deterioration in EBIT margin of 42 bp, of which -25 bp on an organic basis, for a landing of 26.4%.
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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 decision-making aids 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.
Group sales are expected to decline further in Q2 24/25: -2.6% vs. -5.9% in Q1 24/25. A sequential improvement, indeed, although still no recovery in sight, in addition to a still difficult and uncertain context in both the US (20% of group sales) and China (10% of group sales), the broker says.
This downward revision is mainly due to China. We are now expecting a -25% organic decline in sales in Q2 24/25, compared with -10% previously, Oddo BHF explains.
In Europe, we understand that inflation continues to affect consumption, in addition to the unfavorable weather conditions which, in Q2 24/25, continue to affect markets such as Spain. We expect Q2 sales to be stable on an organic basis, compared with +2.3% previously, the analyst adds.
Oddo BHF now expects organic sales and EBIT to fall by 1.6% and 2.5% respectively, representing a deterioration in EBIT margin of 42 bp, of which -25 bp on an organic basis, for a landing of 26.4%.
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 decision-making aids 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.