(News Bulletin 247) – Deutsche Bank reduced its price target on Pernod Ricard on Friday from 162 to 159 euros, while maintaining its ‘sell’ recommendation on the stock.
If he points out that the annual results of the group of wines and spirits emerged above expectations in terms of organic growth, the analyst notes that the net profit as the operating profit proved to be below expectations.
Admittedly, Pernod reiterated its objective of growth in turnover at the top of a range of between +4% and +7% and an expansion of the current operating margin of +50 to +60 basis points, adds- he, but his management team refused to endorse these forecasts for the 2023/2024 financial year.
Its management also mentioned a relatively slow start to the year under the effect of an unfavorable base effect and economic difficulties in China, continues DB.
The intermediary is also worried about the difficulties encountered by consumption outside the home in China, and in particular the bad patch experienced by the country’s nightclubs, which comes on top of the concerns surrounding activity in the United States.
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