Pernod Ricard: Jefferies still a buyer, but cuts target

(CercleFinance.com) - Jefferies reinstates its "buy" rating on the Pernod Ricard share, while shaving a fraction off its corresponding target price (currently 182 euros, vs.
185 euros previously), judging that "Shares are not expensive for a co that should compound MSD sales with margin expansion".

"Sustainable top-line growth is a key priority, but we see a shift toward profitable growth and current religion on margin will be extended beyond F21," the broker says.

Jefferies has reduced its forecast for organic growth in EBITDA in 2020 from 7% to 6% (vs. a group target range of 5%-7%), given weaker macroeconomic conditions in India, although it believes that "this should be transitory".


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