Pernod Ricard: Barclays raises target price

(CercleFinance.com) - On Friday Barclays nudged up its target price for Pernod Ricard shares to 195 euros (from 194 euros), ahead of the publication of the French spirits group's quarterly sales figures on Thursday 22 April.


The broker - which maintains an "overweight" rating on the stock - says it expects organic sales growth of 13.5%, above the consensus of 11.3%, mainly driven by Asia.

Barclays says that it is "particularly optimistic" about China, as well as India, where it said the group was benefiting from favourable headwinds and a favourable comparison basis.

Business in Europe is expected to be relatively weak, the analyst continued, due to the prolongation of lockdowns and similar restrictions and closures, which leads him to believe that Pernod will be "prudent" in its forecasts by targeting organic growth of its underlying operating profit for the financial year of between 6% and 8%.

The share is currently up about 0.5% at 169 euros, outperforming the CAC 40 (+0.15%).


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