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 E140.


To play the recovery in China and/or the US, investors are unlikely to favour the French spirits group, which is underexposed to its two markets relative to its peers (30% of sales vs. +40% for Diageo (Outperform) and +60% for Rémy Cointreau (Outperform)), the analyst says.

Oddo BHF anticipates Q1 24/25 sales of E2,869m, down -5.7% vs. -0.9% previously. The organic decline in sales should come out at -4% vs. +0.8% previously.

The broker says that the company should maintain its guidance for FY 24/25, i.e. that it should generate positive organic sales growth to support margin growth in FY 24/25.

However, the downward revision of our Q1 24/25 results in us reducing our 24/25 EPS estimates by -3.4%.


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