Pernod Ricard: Credit Suisse confirms rating
(CercleFinance.com) - On Friday morning Credit Suisse said that it has slightly increased its earnings estimates for the W&S group.
"We expect organic sales to increase by 10.8% in Q3 2021 (compared to the current Visible Alpha consensus of +11.4%) as Pernod begins to absorb the initial impact of Covid (Q3 2020 -14.4%)".
The analyst notes a slightly stronger recovery in Asia. "Our FY21-23E EPS move up by c1% supported by recent FX moves... Solid Asia recovery offsets US underperformance and Europe. We expect India to accelerate (CSe Q3 +15% v Q2 +2%)," Credit Suisse says.
"Pernod trades on a calendarised 2022E P/E of 22.3x and 24.5x EV/NOPAT, a 3-5% premium to Diageo. We believe that this is unwarranted given its slower topline recovery prospects," the broker adds.
Credit Suisse therefore confirms its neutral advice on the stock with an unchanged target of 172 euros.
Copyright (c) 2021 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.
"We expect organic sales to increase by 10.8% in Q3 2021 (compared to the current Visible Alpha consensus of +11.4%) as Pernod begins to absorb the initial impact of Covid (Q3 2020 -14.4%)".
The analyst notes a slightly stronger recovery in Asia. "Our FY21-23E EPS move up by c1% supported by recent FX moves... Solid Asia recovery offsets US underperformance and Europe. We expect India to accelerate (CSe Q3 +15% v Q2 +2%)," Credit Suisse says.
"Pernod trades on a calendarised 2022E P/E of 22.3x and 24.5x EV/NOPAT, a 3-5% premium to Diageo. We believe that this is unwarranted given its slower topline recovery prospects," the broker adds.
Credit Suisse therefore confirms its neutral advice on the stock with an unchanged target of 172 euros.
Copyright (c) 2021 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.