Pernod Ricard: boosted by a broker upgrade

(CercleFinance.com) - Pernod Ricard shares rose sharply on the Paris Bourse on Thursday, buoyed by a note from Deutsche Bank, which upgraded its rating on the stock a month before the publication of quarterly sales.


At around 9.15 a.m., the share price was up 1.3%, one of the biggest gains on a CAC 40 index up by around 0.5%.

Deutsche Bank said that it has upgraded its rating on the spirits group from 'sell' to 'hold', raising its target price from E135 to E140.

The broker points out that the stock has largely underperformed since it was downgraded to 'sell' at the beginning of 2023, falling 24% over the period, 21% behind the STOXX Europe 600 Food & Beverage and 47% behind the STOXX Europe 600.

Analysts consider that the stock is now fairly valued and that its risk/return profile is now correctly balanced.

Deutsche warns, however, that the group remains exposed to the normalization of the US spirits market, to market share losses in the US, as well as to economic uncertainty and regulatory developments in China.

Pernod Ricard is due to publish Q3 sales before the market opens on 25 April.


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