PERNOD RICARD : Oddo BHF confirms its rating on the stock
November 30, 2023 at 05:32 am
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Oddo BHF maintains its 'outperform' rating on Pernod Ricard shares, with an unchanged target price of 198 euros.
The analyst notes that he appreciates the quality of the group's fundamentals, and that the share's derating at historically low valuation levels constitutes 'an attractive entry point for a quality stock whose momentum should recover during 2024'.
Oddo BHF also reviews the appointment of Conor McQuaid as head of North America, succeeding Ann Mukherjee. The analyst is confident in the new CEO's ability to rise to the challenge, given his experience and track record with Pernod Ricard.
However, this appointment should not act as a short-term catalyst for the stock, the analyst believes.
As a reminder, Oddo BHF anticipates stable adjusted EPS growth in FY 23/24.
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Pernod Ricard is the world's No. 2 in the production and marketing of Premium and Prestige spirits and wines. Net sales break down by family of products as follows:
- spirits and champagnes of strategic international brands (63.4%): Absolut (12.7 million cases sold in 2022/23), Jameson (10.7 million), Ballantine's (8.8 million), Chivas Regal (5.1 million), Malibu (4.7 million), Ricard (4.4 million), Havana Club (4.3 million), Beefeater (3.7 million), Martell (2.4 million), The Glenlivet (1.6 million), Mumm (0.6 million), Royal Salute (0.3 million) and Perrier-Jouët (0.3 million);
- local strategic brands' spirits (17.7%): Seagram's, Kahlua, Olmeca, Seagram's Gin, Ramazzotti, Imperial, Pastis 51 and Clan Campbell brands, etc.;
- speciality brand's craft spirits (6.2%): Italicus, Lillet, Pernod, Suze, Augier, Malfy, Jefferson's, Powers and Redbreast brands, etc.;
- strategic wines (3.9%): Jacob's Creek, Kenwood, Brancott Estate, Campo Viejo, Church Road, George, St Hugo, Stoneleigh, Ysios and Wyndham brands;
- other (8.8%).
At the end of June 2023, the group has 96 production sites worldwide.
Net sales are distributed geographically as follows: Europe (28.5%), Americas (28.7%) and other (42.8%).
PERNOD RICARD 
