Pernod Ricard: Deutsche Bank no longer sells

(CercleFinance.com) - On Thursday, Deutsche Bank changed its recommendation on Pernod Ricard from 'sell' to 'hold', while raising its target price from 135 to 140 euros.


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, i.e. 21% behind the STOXX Europe 600 Food & Beverage and 47% behind the STOXX Europe 600.

"We consider that the stock is now well valued and that its risk/return profile is now correctly balanced", explains the professional.

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

In short, the broker considers Pernod to be a first-rate player in a quality sector, but fears the risk of a downgrading of market earnings forecasts, a prospect which it nevertheless believes is fairly well integrated into the share price.

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