Analyst Cedric Lecasble from Stifel Nicolaus maintained a Hold rating on Pernod Ricard (0HAT – Research Report) and decreased the price target to €132.00 from €138.00.
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Cedric Lecasble has given his Hold rating due to a combination of factors influencing Pernod Ricard’s current financial outlook. The company faces challenges, particularly in the US and Chinese markets, which are critical for its growth strategy. While there is some resilience in other markets like India and Europe, the lack of significant presence in key segments such as tequila and bourbon in the US poses a disadvantage. Additionally, the ongoing tariffs affecting China and the US further complicate the company’s profitability prospects.
Despite efforts to mitigate these impacts, including cost optimization and strategic pricing adjustments, there is still uncertainty around the timing of a rebound in China and the company’s ability to close competitive gaps in the US market. The recent decline in sales and limited visibility into future earnings, particularly for the fiscal year 2026, contribute to this cautious stance. Therefore, while there are some positive developments like cost control and volume growth, these are not sufficient to warrant a more optimistic rating at this time.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a €140.00 price target.