Pernod Ricard: Oddo BHF remains neutral before results.
(CercleFinance.com) - The group will publish its annual results in the morning of Thursday 31 August.
Prior to this publication, Oddo has confirmed its Neutral rating on the stock, with a target price of 105 euros (DCF).
Oddo BHF said in its daily research report that it expects slightly more than the consensus (1%) for this publication, which could disappoint - particularly in the US. Its caution is even more justified for the next fiscal year (2017-18), when the consensus again expects EPS growth of close to 10%, i.e. +7% (2017-18 EPS at 6.04 euros, vs. 6.1 euros for the broker.
The broker continued, saying that based on organic sales growth of 3-4%, Pernod will have to further improve its operating margin, which is likely to be tricky, with India impacted by the GST and a weaker US market. Also, it is not certain that China will be strong enough to facilitate this EPS growth, which may lead it to cut its forecasts for 2017-18e.
Copyright (c) 2017 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.
Prior to this publication, Oddo has confirmed its Neutral rating on the stock, with a target price of 105 euros (DCF).
Oddo BHF said in its daily research report that it expects slightly more than the consensus (1%) for this publication, which could disappoint - particularly in the US. Its caution is even more justified for the next fiscal year (2017-18), when the consensus again expects EPS growth of close to 10%, i.e. +7% (2017-18 EPS at 6.04 euros, vs. 6.1 euros for the broker.
The broker continued, saying that based on organic sales growth of 3-4%, Pernod will have to further improve its operating margin, which is likely to be tricky, with India impacted by the GST and a weaker US market. Also, it is not certain that China will be strong enough to facilitate this EPS growth, which may lead it to cut its forecasts for 2017-18e.
Copyright (c) 2017 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.