After Bloomberg reported that Pernod Ricard (PDRDF) is exploring a potential acquisition of Brown-Forman (BF.A) (BF.B), TD Cowen said the firm views Brown-Forman as “an unlikely seller” given the family’s roughly 67% voting control and track record of rebuffing past acquisition attempts. However, the firm believes the board and family “may be more receptive than they have been in the past” given persistent spirits industry declines and the industrial logic of consolidation because growth has slowed, the analyst added. The firm has a Hold rating and $30 price target on Brown-Forman.
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