Pernod Ricard: share price torn between two analysts' notes

(CercleFinance.com) - Pernod Ricard (-0.
2%) was trading without much direction on Monday, with a downgrade by Deutsche Bank analysts offset by more encouraging comments from Jefferies.

In a sector study published this morning, Deutsche Bank said it had reduced its advice on the stock from 'hold' to 'sell', with a price target lowered from 120 to 106 euros.

The intermediary points out that, after a difficult summer, Pernod now belongs to the group of seven out of ten major European beverage groups to post a negative performance this year.

Jefferies, on the other hand, believes it's time to go back to buying spirits, and in particular Pernod Ricard, which it considers to be its favorite stock in the sector.

The American broker believes that the market is mistakenly considering the French group's slowdown in growth to be "structural" in nature, which means, in his view, that the stock could take off again if there are any positive surprises in the medium term.

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